Suppose in 2016 Paula's nominal income was $55,500 and in 2019 her nominal income was $61,000....

Suppose in 2016 Paula's nominal income was $55,500 and in 2019 her nominal income was $61,000. Also suppose the consumer price index in 2016 was 103 and the consumer price index in 2019 was 126. The percentage change in Paula's real income was,

	a.	22.3%
	b.	11.3%
	c.	9.9%
	d.	–10.2%
	e.	-11.3%

Expert Solution

Real income =(nominal income /CPI)*100

Real income in 2016=(55500/103)*100=53883.4951=53883.50

real income in 2019=(61000/126)*100=48412.6984=48412.70

%change inm real income =((real income of the year-old real income )/old real income )*100

=((48412.6984-53883.4951)/53883.4951)*100

=-10.1530101

=-10.2%

The real income changes by -10.2%

Option d

Rahul Sunny answered 3 years ago

Lacy is a single taxpayer. In 2019, her taxable income is $42,100. What is her tax...

Lacy is a single taxpayer. In 2019, her taxable income is $42,100. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. Can you please show me step by step? a. Tax Liability b. Her $42,100 of taxable income includes $3,600 of qualified dividends. c. Her $42,100 of taxable income includes $6,300 of qualified dividends.

Let's say that in 2019, Mary Jones was employed all year at a jobmaking $61,000...

Let's say that in 2019, Mary Jones was employed all year at a job making $61,000 in wages, that is, gross income, and, after $21,000 was "taken out" in various taxes and fees, she was clearing $40,000 per year in net income. Let's say that this is the only source of income for her family. She and her family spent $39,000 and saved the other $1,000. What is her A.P.C.? Is this good for our economy, in your opinion? Or...

In 2019, Julia made eligible charitable donations of $50,000. Her taxable income for 2019 was $300,000....

In 2019, Julia made eligible charitable donations of $50,000. Her taxable income for 2019 was $300,000. What was her federal charitable donations tax credit?

2018 2017 2016 2015 2014 Sales $ 80,000 $ 73,000 $ 61,000 $ 57,000 $ 50,000...

2018 2017 2016 2015 2014 Sales $ 80,000 $ 73,000 $ 61,000 $ 57,000 $ 50,000 Cost of goods sold 72,600 53,400 45,600 33,300 30,000 Dollar amounts stated above are in thousands. a. Compute trend percentages for the above items taken from the financial statements of Lopez Plumbing over a five-year period. Treat 2014 as the base year. b. State whether the trends are favorable or unfavorable. Required A Required B Compute trend percentages for the above items taken from...

Killingsworth Publishers Inc. budgeted production of 61,000 diaries in 2016. Paper is required to produce a...

Killingsworth Publishers Inc. budgeted production of 61,000 diaries in 2016. Paper is required to produce a diary. Assume 104 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 317,000 square yards. The desired December 31, 2016, paper inventory is 349,000 square yards. If paper costs $0.14 per square yard, determine the direct materials purchases budget for 2016. If required, round your final answer to the nearest dollar. Dauber Publishers Inc. budgeted production...

Part 1 (1 point) Suppose that between 2015 and 2016, nominal GDP grew by 6%. If the...

Part 1 (1 point) Suppose that between 2015 and 2016, nominal GDP grew by 6%. If the price level grew by 2% and population grew by 1.5%, real per capita GDP grew by %. Part 2 (1 point) If real per capita GDP continues to grow at this rate, it would double in years. Give your answer to the second decimal.

Assume that in 2018 the nominal GDP was $8,000 billion and in 2019 the nominal GDP...

Assume that in 2018 the nominal GDP was $8,000 billion and in 2019 the nominal GDP was $8,500 billion. Based on this information can we make any meaningful comparison of the economy’s performance? Would the value of automobile production in 2019 in the U.S. by a Korean auto company be counted in the U.S.’s GDP for the Year 2019? Briefly explain. If you purchased $10,000 of Google stock in 2019, would that purchase be included in GDP statistics for 2019?...

If nominal income increases, then real income

If nominal income increases, then real income a. increases if you buy only the goods included in the consumer price index (CPI) and the majority of those goods get cheaper. b. increases if the price index falls. c. increases. d. decreases. e. increases if the percent increase in price index rises by more than the percent change in nominal income.

Using the following table, calculate the taxes for an individual with taxable income of $61,000. 10...

Using the following table, calculate the taxes for an individual with taxable income of $61,000. 10 % Up to $10,100 15 % $10,100–$42,500 25 % $42,500–$99,600 28 % $99,600–$198,400 33 % $198,400–$411,150 35 % Over $411,150

Suppose that a person’s wealth is $50,000 and that her yearly income is $60,000. Also, suppose...

Suppose that a person’s wealth is $50,000 and that her yearly income is $60,000. Also, suppose that her money demand function is given by: Md = $Y(0.35 − i). (a) Derive the demand for bonds. a) What is the effect of an increase in the interest rate of 10% (from, say, 2% to 12%) on the demand for bonds? (b) What are the effects of an increase in wealth on money demand and on bond demand? Explain in words. c)...

Question