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1. Assume that the CPI increases from 220 to 244, and that a person`s nominal income...

1. Assume that the CPI increases from 220 to 244, and that a person`s nominal income increased from $50,000 to $55,000 over the same period. This person`s real income has _____ .

A. Decreased
B. Increased by 5%
C. Increased by 10%
D. Remained the same

2. If the CPI increases from 150.0 to 157.5 over the course of a year, what is the rate of inflation for that year?

3. Assume that in 2019 Acme sold $30 million of widgets, and in 2020 Acme sold $31.5 million of widgets. There was a 3% rate of inflation in 2020.
    What happened to the real revenue earned from Acme widgets in 2020?

A. It did not change
B. It decreased
C. It increased
F. Not enough information to determine

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