In 2020, the value of the Consumer Price Index (CPI) in a certain country, Polonia, was 235 and median ( nominal) household income was $33,400. In 1950, the CPI was 89 and median (nominal) household income was $8,300. calculate median real household income in 1950, and in 2020, using 2020 as a base year
In 2020, the value of the Consumer Price Index (CPI) in a certain country, Polonia, was 235 and median ( nominal) household income was $33,400. In 1950, the CPI was 89 and median (nominal) household income was $8,300. calculate median real household income in 1950, and in 2020, using 2020 as a base year
Chapter13: Inflation
Section: Chapter Questions
Problem 17SQ
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Transcribed Image Text:In 2020, the value of the Consumer Price Index (CPI) in a certain country, Polonia, was 235 and median (
nominal) household income was $33,400. In 1950, the CPI was 89 and median (nominal) household
income was $8,300. calculate median real household income in 1950, and in 2020, using 2020 as a base
year
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