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
