Question

atlanta, ga has a cpi of 168. seattle, wa has a cpi of 204. how does the purchasing power of an atlanta resident earning a $32,800 salary compare to the purchasing power of a seattle resident earning a $46,400 salary?
a. the atlanta resident has $34.46/cpi more than the seattle resident.
b. the atlanta resident has $83.20/cpi more than the seattle resident.
c. the seattle resident has $48.74/cpi more than the atlanta resident.
d. the seattle resident has $32.21/cpi more than the atlanta resident.

Explanation:

Calculate purchasing power for each resident

Using the Consumer Price Index and Inflation Adjustment knowledge points

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Compare the purchasing power values

Using the Inflation Adjustment knowledge point

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LATEXBLOCK1
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The Seattle resident has approximately \$32.21/CPI more purchasing power than the Atlanta resident.

Answer:

• a. The Atlanta resident has $34.46/CPI more than the Seattle resident.
• b. The Atlanta resident has $83.20/CPI more than the Seattle resident.
• c. The Seattle resident has $48.74/CPI more than the Atlanta resident.
• d. The Seattle resident has $32.21/CPI more than the Atlanta resident. (Correct answer)