2----04macro - $36,000/(120/100)= $30,000 Real Income in...

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Gregory Hoffman 1. Current Year/ Base Year x 100= CPI $197/ $164= 120.121951 2. The current national debt is $13,789,013,561,493.72 Inflation is good for a debtor because the debt owed, along with the interest payments, shrinks in real value. 3. Nominal Income / (CPI/100) = Real Income $42,000/ (150/120) = $33,600 Real Income in 2010.
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Unformatted text preview: $36,000/(120/100)= $30,000 Real Income in 2009 12% increase in Nickie's real income. Nickie was hurt by this unanticipated inflation as if it did not increase, then she would have made $35,000 ($42,000/ (120/100). 4. Base Year Value for 2009 = 100 CPI for 2010= 119.51219 Percentage Change In The CPI= 19.51219%...
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This note was uploaded on 05/15/2011 for the course ECON 101 taught by Professor Dannicatambay during the Fall '08 term at UPenn.

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