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An engineer in 1950 was earning $6,800 a year. In 2015 she earned $88,000 a year. However, on average, prices in 2015 were higher than in 1950. What was her real income in 2015 in terms of constant 1950 dollars? Use the data in Table 5.8
Table 5.8:
CPI Percent change since 1950
1950 25.0
1960 29.8 +19.2%
1970 39.8 +59.2
1980 86.3 +245.2
1990 133.8 +435.2
2000 174.0 +596.0
2010 219.2 +776.80
2015 236.5 +846.0
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