In 1979, when the consumer price index was 72.58, men earned a median income of $11,779 per year. If the consumer price index in 2015 was 236.99, how much was $11,779 in 2015 dollars?
A)$42,959
B)$3,607
C)$38,461
D)$11,779

Question

Quizplus · Accepted Answer

To adjust for inflation, we need to find the ratio of the two consumer price indices: 
$236.99 / 72.58 = 3.262

Then, we can multiply the initial median income by the inflation ratio to get the equivalent value in 2015 dollars: 
$11,779 x 3.262 = $38,461

Therefore, the answer is C.

In 1979, When the Consumer Price Index Was 72