Scenario 6-1 Grant Smith Was a Doctor. in 1944, He Made $12,000

question 71

Multiple Choice

Scenario 6-1
Grant Smith was a doctor. In 1944, he made $12,000. His daughter, Lisa Smith, is also a doctor. Last year she made $275,000. The price index in 1944 was 17.6 and the price index last year was 200.
-Refer to Scenario 6-1. What is Grant's 1944 income in last year's dollars?

• A) $19,128
• B) $21,240
• C) $120,682
• D) $136,363

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Definitions:

Aggregate Supply

The total supply of goods and services available to a particular market from producers at various price levels, in the context of macroeconomic analysis.

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

National Saving

The total amount of savings generated within a country, representing the difference between national income and consumption plus government spending.

Budget Resolution

A congressional agreement about total outlays, spending by major category, and expected revenues; it guides spending and revenue decisions by the many congressional committees and subcommittees.