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In 2010, the Average Price Level in Macroland Is 130

Question 20

Multiple Choice

In 2010, the average price level in Macroland is 130, and in 2015, the price level rises to 162. During the same time period, Inga's salary rises from $70,000 to $85,000. Over this time period, the purchasing power of Inga's income:


A) fell by 3.2%.
B) rose by 21.4%.
C) fell by 9.4%.
D) rose by 24.6%.

Correct Answer:

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