If the CPI Is 220 and Nominal Income Is $37,000,approximately

question 28

Multiple Choice

If the CPI is 220 and nominal income is $37,000,approximately what does real income equal?

• A) $81,400
• B) $16,818
• C) $76,500
• D) $44,118

---

Definitions:

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Purchasing Power

How much a single unit of money can purchase in terms of goods or services, indicating the currency's value.

CPI

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Period

A length or portion of time.