Sam lives in Houston, TX and Jack lives in Denver, Co. Use the CPI for Houston and Denver areas in Table 1.1. below to fill in the blank cells in Table 1.2. Show your work by typing in the formulas you use.
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Table 1.1. Consumer Price Index (CPI-U) All items |
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Base Period: 2009=100 |
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Year |
Houston-the Woodlands-Sugar Land, TX |
Denver-Aurora-Lakewood, CO |
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2009 |
100.00 |
100.00 |
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2010 |
101.93 |
101.87 |
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2011 |
105.25 |
105.63 |
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2012 |
107.20 |
107.68 |
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2013 |
108.97 |
110.67 |
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2014 |
112.01 |
113.74 |
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2015 |
111.83 |
115.08 |
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2016 |
113.61 |
118.27 |
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2017 |
115.83 |
122.27 |
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2018 |
118.60 |
125.61 |
Table 1.2. Earnings and CPI Annual Averages, Houston, TX and Denver, CO
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2017 |
2018 |
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Sam earned in Houston, TX (current dollars) |
$55,000 |
$59,000 |
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Jack earned in Denver, CO (current dollars) |
$57,000 |
$60,000 |
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CPI-U All Items for Houston |
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CPI-U All Items for Denver |
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Sam's real earnings (inflation-adjusted) in Houston, expressed in 2009 dollars |
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Jack’s real earnings (inflation-adjusted) in Denver, expressed in 2009 dollars |
In case of Sam,
Real Earnings in 2017=Earning in 2017(Current dollars)*(CPI in base 2009/CPI in 2017)
=55000*(100/115.83)=$47483.38
Real Earnings in 2018=Earning in 2018(Current dollars)*(CPI in base 2009/CPI in 2018)
=59000*(100/118.60)=$49747.05
In case of Jack,
Real Earnings in 2017=Earning in 2017(Current dollars)*(CPI in base 2009/CPI in 2017)
=57000*(100/122.27)=$46618.14
Real Earnings in 2018=Earning in 2018(Current dollars)*(CPI in base 2009/CPI in 2018)
=60000*(100/125.61)=$47766.90
| 2017 | 2018 | |
| Sam earned in Houston, TX (current dollars) | 55000 | 59000 |
| Jack earned in Denver, CO (current dollars) | 57000 | 60000 |
| CPI-U All Items for Houston | 115.83 | 118.6 |
| CPI-U All Items for Denver | 122.27 | 125.61 |
| Sam's real earnings (inflation-adjusted) in Houston, expressed in 2009 dollars | 47483.38 | 49747.05 |
| Jack’s real earnings (inflation-adjusted) in Denver, expressed in 2009 dollars | 46618.14 | 47766.90 |
Sam lives in Houston, TX and Jack lives in Denver, Co. Use the CPI for Houston...
Sam lives in Houston, TX and Jack lives in Denver, Co. Use the CPI for Houston and Denver areas in Table 1.1. below to fill in the blank cells in Table 1.2. Show your work by typing in the formulas you use. Table 1.1. Consumer Price Index (CPI-U) All items Base Period: 2009=100 Year Houston-the Woodlands-Sugar Land, TX Denver-Aurora-Lakewood, CO 2009 100.00 100.00 2010 101.93 101.87 2011 105.25 105.63 2012 107.20 107.68 2013 108.97 110.67 2014 112.01 113.74 2015 111.83 115.08 2016...