Question

45)Based on the information below, please choose the correct answer: In 1990, the CPI was 130 and the median nominal salary of the New York Yankees player was $1.3 million. In 2020, the CPI was 260 and the median nominal salary of the New York Yankees player was $2 million. Which of the following statements is TRUE? You can round up your numbers and this will not affect your answer choice.

Select one:

a. Real annual wages of the New York Yankee player increased from $10,000 to $769,230

b. Real annual wages of the New York Yankee player increased from $1 million to $7.69 million

c. Real annual wages of the New York Yankee player decreased from $1 million to $769,230

d. Real annual wages of the New York Yankee player decreased from $10 million to $7.69 million

Answer 1

From the formula and calculation we can see that option (c) is correct.

Hope this was helpful!!