Question: The CPI in July 1977 was 60.9; in July 1994, it was 148.4.
a. The salary of the governor of California in July 1977 was $49,100; in July 1994, it was $120,000. Compute what the July 1977 salary would be in July 1994, adjusted for inflation, and compare it with the actual salary in July 1994.
b. The salary of the president of the United States in July 1977 was $200,000. In July 1994, it was still $200,000. Compute what the July 1977 salary would be in July 1994, adjusted for inflation, and compare it with the actual salary.