Alex Aliyev Is a Primary School Teacher

question 113

Essay

Alex Aliyev is a primary school teacher. When he started working in 2004, he was earning an annual salary of $36,000. In 2011, his salary was $48,000. The consumer price indices for 2004 and 2011 were 108 and 120, respectively.
A) Compute the nominal increase in Alex's salary between 2004 and 2011.
B) Compute the real increase in Alex's salary between 2004 and 2011.
C) Interpret the result.

• A) Compute the nominal increase in Alex's salary between 2004 and 2011.
• B) Compute the real increase in Alex's salary between 2004 and 2011.
• C) Interpret the result.

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Definitions:

Negative Feedback Loop

A process in a system where some function of the output of a system process reduces the effect of changes in the input, stabilizing the system.

Chemical Reactions

Processes in which substances interact to form new substances with different chemical and physical properties.

Scientific Laws

Principles based on empirical evidence that describe and predict natural phenomena, often expressed in mathematical form.

Occupies Space

A characteristic of physical objects that have a measurable size and volume, existing within a three-dimensional area.