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after graduating from college in 2010, art major's starting salary is $ 45757.00 . suppose art major has a cost of living adjustment (cola) clause, or an escalator clause, in his labor contract so that he will be able to maintain this same level of purchasing power in real terms in 2011 and 2012. using the information in the table, how much will art major earn in 2011 and 2012 if his salary keeps up with inflation? round your answers to the nearest dollar. yearcpi 2010101.77 2011106.80 2012107.06 what is art major's salary in 2011? $ what is art major's salary in 2012? $

Respuesta :

The salary for the Art Major will be $48018.54 and $48135.43, respectively, based on the CPI for 2011 and 2012.

Describe CPI.

The Consumer Price Index, or CPI, is a metric that determines the price change for a basket of commodities in order to gauge inflation. In this context, the term "basket of goods" refers to items such as transportation, food, medication, energy, and other necessities of life.

The CPI determines prices in a base year and determines whether prices for the same commodities increased or decreased in a subsequent year. One of the main criteria for determining periods of inflation or deflation is the CPI. It can also be used to calculate the currency's purchasing power.

Calculation:

A) The 2011 salary for an art major is

= Starting salary x (CPI in 2011 / CPI in 2010)

= 45757 x (106.80 / 101.77)

= $48018.54

B) 2012's starting pay for an art major is

= 2011 wage times (2012 CPI minus 2011 CPI).

= 48018.54 x (107.06 / 106.80)

= $48135.43

Learn more about CPI with the help of the given link:

brainly.com/question/512131

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