In 2008, Cameron began his career with SBC. His starting salary was $32,000. By 2012, his salary increased to $35,000. If the CP

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horsena [70]

1 year ago

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In 2008, Cameron began his career with SBC. His starting salary was $32,000. By 2012, his salary increased to $35,000. If the CP

I was 100.0 in 2008 and 107.5 in 2012, Cameron's 2012 real income is Question 40 options: $32,000.

Business

1 answer:

frez [133] · Answer 1 · 2023-06-24T11:57:23+03:00

Based on the CPI in 2008 and 2012, Cameron's 2012 real income is <u>$34,400</u>.

<h3>What is real income?</h3>

The real income is the inflation-adjusted income. It is not the same as the nominal income.

For instance, Cameron's nominal income in 2012 is $35,000, but the inflation-adjusted (CPI) real income should be $34,400 based on his starting salary of $32,000 in 2008.

<h3>Data and Calculations:</h3>

Starting salary in 2008 = $32,000

Salary in 2012 = $35,000

Consumer Price Index (CPI) in 2008 = 100.0

Consumer Price Index (CPI) in 2012 = 107.5

CPI adjusted salary in 2012 should be (real income) = $34,400 ($32,000 x 107.5/100.0)

Thus, based on the CPI in 2008 and 2012, Cameron's 2012 real income is <u>$34,400</u>.

Learn more about CPI and real income at brainly.com/question/24802187