Your Grandfather Tells You That He Earned $7,000/year in His

question 123

Multiple Choice

Your grandfather tells you that he earned $7,000/year in his first job in 1961.You earn $35,000/year in your first job in 2011.You know that average prices have risen steadily since 1961.You earn

• A) 5 times as much as your grandfather in terms of real income.
• B) more than 5 times as much as your grandfather in terms of real income.
• C) less than 5 times as much as your grandfather in terms of real income.
• D) less than 5 times as much as your grandfather in terms of nominal income.

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