Between 1994 and 2004,Jack's Salary Increased from $100,000 to $200,000

question 157

Multiple Choice

Between 1994 and 2004,Jack's salary increased from $100,000 to $200,000 per year and the price index increased from 100 to 300 during the same period.Which of the following statements best describes Jack's situation?

• A)his real income and money income have both increased
• B)his real income increased and money income decreased
• C)his real income and money income both decreased
• D)his real income decreased and money income increased
• E)his real income and money income remained unchanged

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Definitions:

CPI

A gauge called the Consumer Price Index tracks the overall cost of a varied mix of consumer items and services like food, healthcare, and transport, by measuring their weighted average prices.

Cost Of Living

The amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a particular place and time.

Base Year

A specific year chosen as a point of reference for comparing economic data, such as price levels, over time.

Inflation

The tempo at which the general price level of goods and services rises, leading to a fall in the ability to purchase.