Business, 07.04.2020 23:39 avision42

In year 1 the CPI is 140, and in year 2 the CPI is 154. From year 1 to year 2, Maria's salary rises from $43,000 to $48,000, and Daisy's salary rises from $65,000 to $70,000. Who is "more than keeping up with inflation"?

Answers: 3

Show answers

Answers

Maria is more keeping up with inflation because her salary has increased by a percentage rate (12%) that is higher that the inflation rate (10%)

Explanation:

To determine who is keeping up with inflation more, we would compare the percentage in the salaries to the inflation rate

Inflation rate = (CP1 in year 2/CPI in year 1) × 100

= (154/140) × 100

= 10%

Change in salary =

(Current salary - previous salary)/previous salary× 100

Maria

= (48,000 - 43,000)/43,000 × 100

= 12%

Daisy's

= (70,000- 65,000)/65,000× 100

= 8%

Maria is more keeping up with inflation because her salary has increased by a percentage rate (12%) that is higher that the inflation rate (10%)

Answer from: Axe15x

Who is "more than keeping up with inflation"?

Maria

Explanation:

the person who is more than keeping up with inflation is the one that has the highest salary raise between years 1 and 2. We must first determine the real salaries of year 1 and 2, and then determine how much they increased:

Maria's nominal salary Maria's real salary % change

Year 1 $43,000 =$43,000/1.4 = $30,714.29

Year 2 $48,000 =$48,000/1.54 = $31,168.83 1.45%

Daisy's nominal salary Maria's real salary % change

Year 1 $65,000 =$65,000/1.4 = $46,428.57

Year 2 $70,000 =$70,000/1.54 = $45,454.55 -2.1%

Maria actually got a 1.45% increase in her real wage, while Daisy lost money, since her real wage decreased by 2.1%.

Answer from: Quest

answer; interviews;

Answer from: Quest

d. all of the above are true.

Other questions on the subject: Business

Business, 22.06.2019 18:50, saltytaetae

Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)

Answers: 3

continue

Business, 22.06.2019 19:10, XOsam

Coca-cola was primarily known for its core competencies in marketing, bottling, and distributing aerated drinks. however, with the success of gatorade, coca-cola developed competencies in the development and marketing of its own sports drink, powerade. which of the following is true of coca-cola? a. it is leveraging existing core competencies to improve current market position. b. it is building new core competencies to protect and extend its current market position. c. it is redeploying and recombining existing core competencies to compete in markets of the future. d. it is targeting the chasm between the early adopter and early majority market segment.

Answers: 1

continue

Business, 22.06.2019 19:20, kimmosley80

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. during 2003, an auction house sold a sculpture at auction for a price of $10,211,500. unfortunately for the previous owner, he had purchased it in 2000 at a price of $12,177,500. what was his annual rate of return on this sculpture? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answer as

Answers: 2

continue

Business, 22.06.2019 20:40, kaylee0424

Financial performance is measured in many ways. requirements 1. explain the difference between lag and lead indicators. 2. the following is a list of financial measures. indicate whether each is a lag or lead indicator: a. income statement shows net income of $100,000 b. listing of next week's orders of $50,000 c. trend showing that average hits on the redesigned website are increasing at 5% per week d. price sheet from vendor reflecting that cost per pound of sugar for the next month is $2 e. contract signed last month with large retail store that guarantees a minimum shelf space for grandpa's overloaded chocolate cookies for the next year

Answers: 2

continue

You know the right answer?

In year 1 the CPI is 140, and in year 2 the CPI is 154. From year 1 to year 2, Maria's salary rises...