Respuesta :
Assume that Ms. Trumpete's salary is $33,000, up from $31,000 last year, while the CPI is 120 this year, up from 100 last year. This means that Ms. Trumpete's real income has decreased since last year.
What is CPI?
After increasing by 1.3 percent in June, the Consumer Price Index for All Urban Consumers (CPI-U) remained unchanged in July on a seasonally adjusted basis, according to a report released today by the U.S. Bureau of Labor Statistics. The all items index rose 8.5 percent over the previous 12 months prior to seasonal adjustment.
The food and shelter indices increased in July, but this was countered by a 7.7 percent decline in the gasoline index, leaving the all items index unchanged for the month. As the indexes for gasoline and natural gas fell while those for electricity rose, the energy index decreased by 4.6 percent over the course of the month. The food index increased 1.1 percent month over month as the food at home index increased 1.3 percent.
Given:
Last year's salary = $31,000
This year's salary = $33000
Last year's CPI = 100
This year's CPI = 120
Formula used :
(Normal wage in a year / CPI in a year ) x 100 = Real wage in a year
Solution:
Last year's real wage = 100 x 31000/100 = $ 31000
This year's real wage = 100 x 33000/120 = $ 27500
Therefore, the real income has decreased.
To learn more about CPI :
https://brainly.com/question/14453270
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