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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.
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.
Please select the best answer from the choices provided
A
B
D
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Answer :

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Answer: 32.21 (seattle resident has more than atlanta resident)

Step-by-step explanation:

The Seattle resident has $32.21/CPI more than the Atlanta resident.

What is the consumer price index?

The consumer price index is used to measure inflation. It measures the price of a basket of goods.

In order to compare the purchasing power, first adjust the incomes for inflation by dividing the incomes by the CPI.

  • Real income of the person from Atlanta =  $32,800 / 168 = 195.24
  • Real income of the person from Seattle = $46,400 / 204 = 227.45
  • Difference in real income = 227.45  195.24 = $32.21

To learn more about, consumer price index, please check: https://brainly.com/question/26382640

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