3. Nickie’s nominal income was $36,000 in 2009. In 2010, because of her excellent work ethic, she received a raise that increased her nominal income to $42,000. Nickie knew a lot about inflation so she decided to see how much of a raise she really received. After researching the consumer price index at the Bureau of Labor Statistics web site, she found that the CPI for 2009 was 120 and that it jumped to 150 in 2010. Calculate the percent change in Nickie’s real income in 2009 and in 2010. Was she hurt or helped by this unanticipated inflation?

Question

3.	Nickie’s nominal income was $36,000 in 2009. In 2010, because of her excellent work ethic, she received a raise that increased her nominal income to $42,000. Nickie knew a lot about inflation so she decided to see how much of a raise she really received. After researching the consumer price index at the Bureau of Labor Statistics web site, she found that the CPI for 2009 was 120 and that it jumped to 150 in 2010. Calculate the percent change in Nickie’s real income in 2009 and in 2010. Was she hurt or helped by this unanticipated inflation?