Question

1. An engineer in 1950 was earning $6,000 a year. Today she earns $60,000 a year. However, on average goods today cost 6.6 times more what they did in 1950. What is her real income today in terms of constant 1950 dollars

Answer 1

The engineer's real income today in terms of constant 1950 dollars is $14,400.

What is the real income?

Real income ls nominal income less inflation rate. Inflation rate is when there is a persistent rise in the general price levels of a country.

Real income = nominal income - inflation

Inflation = (1 + 6.6) x $6000 = $45,600

Real income = $60,000 - $45,600 = $14,400

To learn more about real income, please check: brainly.com/question/6616964