Suppose you had a choice between living in the United States in 1900 with an income of $991,000 per year or in the United States in 2020 with an income of $55,000 per year. Assume the incomes for both years are measured in 2020 dollars. In which year would you have the highest real income?

Suppose you had a choice between living in the United States in 1900 with an income of $991,000 per year or in the United States in 2020 with an income of $55,000 per year. Assume the incomes for both years are measured in 2020 dollars. In which year would you have the highest real income?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose you had a choice between living in the United States in 1900 with an income of $991,000 per year or in the United States in 2020 with an income of
$55,000 per year. Assume the incomes for both years are measured in 2020 dollars.
In which year would you have the highest real income?

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