| Question |
According to the U.S. Census Bureau (www.census.gov), nominal income for the typical family of four in the United States (median income) was $24,332 in 1980, $32,777 in 1985, $41,451 in 1990, and $62,228 in 2000. In purchasing power terms, how did family income compare in each of those four years? You will need to know that the CPI (multiplied by 100, 1982-1984 = 100) was 82.4 in 1980, 107.6 in 1985, 130.7 in 1990, and 172.2 in 2000. In general terms, how would your answer be affected if the Boskin Commission’s conclusions about the CPI were confirmed? |
