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Aleksandr [31]
3 years ago
9

At the time of Elise’s 20 year high school reunion she was earning $50,000 and the CPI was 80. Now that it is time for her to at

tend her 25 year high school reunion, Elise’s income has risen to $80,000 and the CPI is 150. At her 25 year reunion, can Elise rightfully brag that her real income has risen since the last time she saw her former classmates five years ago?
Business
1 answer:
babunello [35]3 years ago
3 0

Answer:

Her real income has decrease by  $7,333.33

Explanation:

<em>Real income is the amount of goods and services that a give amount of quantity money can purchase. It is also known as the purchasing power of money.  </em>

To determine if there has been a change in her real income, we will compare her real income 20 years ago to her real income 5 years later. This will be done as follows;

Step 1

Determine her real income 5 years after her last reunion

Real income in current year = (CPI in base year/CPI in current year ) × Nominal income

                     = (80/150)× 80,000

                    =   $42,666.67

Step 2

Determine change in real income

Her real income has decrease by  $7,333.33. This is difference between her real income 5 years ago and now. That is $50,000 -  $42,666.67.

Tis implies she cannot purchase as much as she could 5 years ago because of inflation.

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3 0
2 years ago
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DeAngelo went to the store to purchase groceries. By the time he reached the paper products aisle, he was down to his last few d
FinnZ [79.3K]

Answer:

Generic Brand

Explanation:

Based on the scenario being described it can be said that the brand that DeAngelo seems to have bought is known as a Generic Brand. These are a product brand that is distinguished by it's absence of any brand name on the package and instead it's package only defines it's characteristics. They usually are the cheapest option and compete with more expensive branded products.

3 0
2 years ago
Historical data shows that during the recession of 1990–1991, the natural rate of unemployment was about 5.9% while the actual u
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Answer:

a. The actual unemployment rate was higher during the recession of 1990-1991, but cyclical unemployment was higher in 2001.

Explanation:

Unemployment is defined as the number of people in a population that are willing to work and seeking for jobs but do not have employment.

Natural unemployment is defined as the normal process of leaving jobs and getting jobs in a situation when there is full employment.

Cyclical unemployment is created by recessions and booms.

Actual unemployment = Natural rate + Cyclical rate

Cyclical unemployment= Actual rate - Natural rate

In the first economy

Cyclical rate = 7 - 5.9= 1.1%

In the second economy

Cyclical rate= 6 - 4.8= 1.2%

So actual unemployment was 7% in 1990-1991 while in 2001 it was 6%

Cyclical unemployment was 1.1% in 1990-1991, while cyclical unemployment was 1.2%

6 0
3 years ago
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A company's Income Tax Payable account decreased from $14 million to $12 million during the year. If its income tax expense was
Flura [38]

Answer:

A cash outflow of $82 million is correct answer

Explanation:

Options:

A cash outflow of $12 million.

A cash outflow of $78 million.

A cash outflow of $80 million.

A cash outflow of $82 million.

(Hope this helps can I pls have brainlist (crown)

8 0
2 years ago
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During the financial crisis of 2007-2008, the Fed engaged in lending to certain large non-bank financial firms in the private se
Delvig [45]

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