Your Grandfather Tells You That He Earned $5,000/year in His

question 63

Multiple Choice

Your grandfather tells you that he earned $5,000/year in his first job in 1971.You earn $45,000/year in your first job in 2017.You know that average prices have risen steadily since 1961.You earn

• A)9 times as much as your grandfather in terms of real income.
• B)more than 9 times as much as your grandfather in terms of real income.
• C)less than 9 times as much as your grandfather in terms of real income.
• D)less than 9 times as much as your grandfather in terms of nominal income.
• E)more than 9 times as much as your grandfather in terms of nominal income.

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Definitions:

Republic

Representative political system in which citizens govern themselves by electing representatives, or legislators, to make key decisions on the citizens’ behalf.

Liberty and Freedom

Fundamental principles representing the right of individuals to live their lives without oppressive restrictions imposed by authority.

American Freedom

The set of rights, principles, and practices that define the liberty and democracy of the United States.

Westward Expansion

The 19th-century movement of settlers into the American West, encouraged by the belief in Manifest Destiny and the search for land, wealth, and freedom.