00:01
Okay, so i see that you need help with this question, and it states, suppose your income rises from $19 ,000 to $31 ,000.
00:09
Well, the cp rises, i'm sorry, cpi rises from $122 to $169.
00:17
Your standard of living likely will show your steps, three marks, a, fallen, b, risen, c stayed the same d you can't tell so calculating the real income from both years real income is the income adjusted from inflation it can be calculated by dividing the nominal income the income you actually received by the consumer price index and then multiplying it by a hundred so you're going to do 19 ,000 divided by 122 times 100, and that's $15 ,573 .77.
01:12
Then you'll take 31 ,000 divided by 169 times 100, and you're going to get $18 ,343 .20...
