Question: An engineer in 1950 was earning $6,000 a year. In 2020, she earned $80,000 a year. However, on average, prices in 2020 were higher than

An engineer in 1950 was earning $6,000 a year. In 2020, she earned $80,000 a year. However, on average, prices in 2020 were higher than in 1950. What was her real income in 2020 in terms of constant 1950 dollars? Use the data in :

TABLE 5.8 The consumer price index (CPI) shows how inflation has increased the cost of a typical familys purchases.

	CPI	Percent Change since 1950
1950	25.0
1960	29.8	+ 19.2%
1970	39.8	+ 59.2
1980	86.3	+245.2
1990	133.8	+435.2
2000	174.0	+596.0
2010	219.2	+776.8
2020	262.0	+948.1

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