Essay
Alex Aliyev is a primary school teacher. When he started working in 2004, he was earning an annual salary of $36,000. In 2011, his salary was $48,000. The consumer price indices for 2004 and 2011 were 108 and 120, respectively.
A) Compute the nominal increase in Alex's salary between 2004 and 2011.
B) Compute the real increase in Alex's salary between 2004 and 2011.
C) Interpret the result.
Correct Answer:
Verified
a. 33.33%
b. 20%
c. Although Alex's nomi...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
b. 20%
c. Although Alex's nomi...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q108: The income component is _ for stocks,
Q109: The real return from investing $100 in
Q110: The Laspeyres price index uses the quantities
Q111: Which of the following correctly identifies the
Q112: Gulten started her career with an annual
Q114: Firms A, B, and C operate in
Q115: Using 2008 as the base year, the
Q116: The adjusted close price of a share
Q117: If the price index for a particular
Q118: Which of the following statements is true