Question
An economics graduate student in the United States earns an $18,000 stipend per year. The U.S. sees significant inflation. How might the student react?
Move into a larger, more spacious apartment
Buy a new computer she had been putting off due to costs
Increase the number of books in her syllabus for students to buy
Ask for a cost-of-living increase to her stipend
Move into a larger, more spacious apartment
Buy a new computer she had been putting off due to costs
Increase the number of books in her syllabus for students to buy
Ask for a cost-of-living increase to her stipend
Answers
GPT-4o mini
Given that the student is facing significant inflation, the most logical and practical reaction would likely be:
**Ask for a cost-of-living increase to her stipend.**
Inflation affects purchasing power, meaning that the stipend may not cover the same expenses as it did before. Thus, seeking an increase in the stipend would help her maintain her living standard.
The other options (moving into a larger apartment, buying a new computer, or increasing the number of books in the syllabus) may not be practical or financially feasible, especially if her income does not keep pace with rising costs due to inflation. She is likely to prioritize securing her financial stability before making additional expenditures.
**Ask for a cost-of-living increase to her stipend.**
Inflation affects purchasing power, meaning that the stipend may not cover the same expenses as it did before. Thus, seeking an increase in the stipend would help her maintain her living standard.
The other options (moving into a larger apartment, buying a new computer, or increasing the number of books in the syllabus) may not be practical or financially feasible, especially if her income does not keep pace with rising costs due to inflation. She is likely to prioritize securing her financial stability before making additional expenditures.