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Unformatted text preview: Lisa earned $35,000 in 2006. What would Lisa's salary have to be at the end of year
2013 for her to have the same level of purchasing power as in 2006. The expected
inflation rate is 2.5% for 2013.
(Need some help? Take a look at Example 4 on page 5 of your "Everyday Economics"
text. If you are still stumped, email me.)
d) 41,256.25 Comparing the Cost of Living Among States. The cost of living will often vary from
one state to the next. In general, the cost of living is usually higher in urban areas than in
rural areas. You should refer to Chapter 2 in Everyday Economics by Michael L.
Walden in working the problems below. You have to show all of your work to receive
Table 2 on page 10 of Everyday Economics gives the cost-of-living indices for states in
the fourth quarter of 2011. The average cost-of-living index for the United States is 100.
i) Is the cost-of-living lower in North Carolina or South Carolina? According to Table 2,
the cost-of-living index is 96.90 for North Carolina and 97.70 for South Carolina. These
indexes can be interpreted as "the cost-of-living in North Carolina is 96.90% of the
average cost-of-living in the United States, and the cost-of-living in South C...
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This lab report was uploaded on 02/19/2014 for the course ARE 201 taught by Professor Eryuruk during the Spring '08 term at N.C. State.
- Spring '08