Question

Bart had an income of $45,670 last year.

If the inflation rate is 4.5%, what is his purchasing power?

Answer 1

Do you have any answer choices?

Answer 2

Hint:
From this page
https://www.investopedia.com/terms/r/realincome.asp
it states "Wages - (Wages x Inflation Rate) = Real Income"

Answer 3

For example, if his income was $100,000 and inflation was 4.3%, then

real income = (wage) - (wage*inflation)
real income = 100,000 - 100,000*0.043
real income = 100,000 - 4,300
real income = 95,700 dollars

The inflation ate away $4,300 of his income. It's a hidden tax of sorts.