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Suppose Lucy's Contract Specifies That Her Salary Will Be Increased

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Suppose Lucy's contract specifies that her salary will be increased annually with inflation, as measured by the consumer price index (CPI). Suppose the CPI rose from 110 to 121 last year. By how much would her income go up? How does accelerating inflation affect the purchasing power of her money?

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The rate of inflation is ((121 - 110)/11...

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