2) As a graduating senior your older sibling faced two job offers in December 2021 that averaged $55,000 pay per year before benefits and bonus. She was unhappy and informed your parents that she would need to live in the basement for a year or two before moving out to her own place. Your mom's response is that she lived on her own after she graduated in 1990 when she was making $40,000. Further, she claims that your sister was far better off by making $15,000 more per year and need to reconsider her plans.

a) Assuming that you like your sister - how should you have advised her to respond in economic terms?

b) How much would your sister have to make annually in 2021 in order to enjoy the same purchasing power as your mother in 1990?