Question:
1)President Obama earns about $400,000. What will be the change in the purchasing power of the President's salary, compared to President Clinton's salary in 1993 of $200,000. The CPI (price level) in 2013 is 225 and index in 1993 was 170. Which President has the higher NOMINAL Income? Which President has the higher Real Income? Is the U.S. President's (any of the Presidents) Salary too High or Low and how would to determine the answer to that question?
2) If the worker earned $12.00 /hr. in 1990 and $18.00 in 2000, then who would have a higher nominal income and a higher real income? 1990 is the Base Year and CPI in 2000 is 160.
A) Nominal Income for worker in 2000 is higher and the Real Income for worker in 2000 is higher.
B) They will have the same nominal Income and same real incomes.
C) Need more information than the ones provided to answer correctly.
D) The Nominal Income of the 1990 worker is higher and the Real Income for worker in 1990 is also higher.
E) Nominal Income for worker in 2000 is higher and Real Income for worker in 1990 is higher.
F) Nominal Income for worker in 1990 is higher and Real Income for worker in 2000 is higher