Question: Question 4 (8 marks) The table below gives information on the CPI and the monthly take-home pay of Bill Jones, an employee at the Ford

Question 4 (8 marks) The table below gives information on the CPI and the monthly take-home pay of Bill

Jones, an employee at the Ford Canada.

(a) What is the purchasing power of the dollar for 2007 based on the period 2002? (Round the final answer to 5 decimal places.)

(b) Determine Mr. Jones' "real" monthly income for 2007. (Round the final answer to 2 decimal places.) .

(c) What is the purchasing power of the dollar for 2010 based on the period 2002? (Round the final answer to 5 decimal places.)

(d) Determine Mr. Jone's "real" monthly income for 2010. (Round the final answer to 2 decimal places.)

Year (2002 = 100)

Consumer Price Index (CPI)

Mr. Martins Monthly Take-Home Pay ($)

2002

100.0

2300

2007

111.5

2700

2010

116.5

2900

2013

122.8

3100

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