In a country, It has been reported that the average graduate salary was AED 200,000 in 2020 compared to AED 150,000 in 2010. The CPI was 1.00 in2020 compared to 1.00 in 2010. This information is presented in the following table:20102020Nominal Salaryin AEDCPIRequired:150,000200,0001.001.00A. Calculate real salary for 2010B. Calculate real salary for 2020c. Calculate the growth rate in NOMINAL income between 2010 and 2020D. Calculate the growth rate in REAL income between 2010 and 2020E Calculate the inflation rate between 2020 and 2020F. Explain the impact of the change in CPI on the change in nominal salary

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2010 2020 inal Salary ED 150,000 200,000 1.00 1.00 uired: Calculate real salary for 2010 Calculate real salary for 2020 Calculate the growth rate in NOMINAL Income between 2010 and 2020 Calculate the growth rate in REAL income between 2010 and 2020 Calculate the inflation rate between 2020 and 2020

2010 2020 inal Salary ED 150,000 200,000 1.00 1.00 uired: Calculate real salary for 2010 Calculate real salary for 2020 Calculate the growth rate in NOMINAL Income between 2010 and 2020 Calculate the growth rate in REAL income between 2010 and 2020 Calculate the inflation rate between 2020 and 2020

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter6: How Statisticians Measure Inflation

Section6.A: How Statisticians Measure Inflation

Problem 5TY

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Question

In a country, It has been reported that the average graduate salary was AED 200,000 in 2020 compared to AED 150,000 in 2010. The CPI was 1.00 in
2020 compared to 1.00 in 2010. This information is presented in the following table:
2010
2020
Nominal Salary
in AED
CPI
Required:
150,000
200,000
1.00
1.00
A. Calculate real salary for 2010
B. Calculate real salary for 2020
c. Calculate the growth rate in NOMINAL income between 2010 and 2020
D. Calculate the growth rate in REAL income between 2010 and 2020
E Calculate the inflation rate between 2020 and 2020
F. Explain the impact of the change in CPI on the change in nominal salary

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