Frank's nominal income in 1998 is $45,000. Suppose the CPI in 1998 is 150. What is Frank's real income?
a. $51,750
b. $45,000
c. $38,250
d. $30,000
can you show me the calculations
real income in what year's dollars.
Real income in the base year of the cpi would be 45000/1.5=30000.
Real income in 1998 dollars is simply 45000.
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