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If consumer's price index number changes from 100 to 352 and the salary of a person was 550 in order to maintain the same standard of living, his expected salary is?
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If consumer's price index number changes from 100 to 352 and the salar...
**Determining the Expected Salary**

To determine the expected salary, we need to consider the change in the consumer price index (CPI) and its impact on the cost of living.

**Understanding the Consumer Price Index (CPI)**

The Consumer Price Index (CPI) is a measure of the average price level of goods and services purchased by households over time. It indicates the inflation or deflation rate and reflects changes in the cost of living. The CPI is often used to adjust salaries or wages to maintain a person's purchasing power.

**Calculating the Salary Adjustment**

To calculate the salary adjustment, we need to use the formula:

Expected Salary = (Current Salary / Initial CPI) * New CPI

Given:
Initial CPI = 100
New CPI = 352
Current Salary = 550

Using the formula, we can calculate the expected salary:

Expected Salary = (550 / 100) * 352
Expected Salary = 3.52 * 550
Expected Salary = 1936

Therefore, the expected salary to maintain the same standard of living is 1936.

**Explanation**

The consumer price index (CPI) number changing from 100 to 352 indicates a significant increase in the average price level of goods and services. This means that the cost of living has increased over time. To maintain the same standard of living, it is necessary to adjust the salary accordingly.

By using the salary adjustment formula, we can calculate the expected salary. We divide the current salary by the initial CPI to calculate the ratio of the salary to the cost of living. Then, we multiply this ratio by the new CPI to determine the expected salary.

In this case, the initial CPI is 100, the new CPI is 352, and the current salary is 550. Plugging these values into the formula, we find that the expected salary is 1936.

This adjustment ensures that the individual's purchasing power remains the same despite the increase in the cost of living. It accounts for the inflation and allows the person to maintain their standard of living without experiencing a decrease in their purchasing power.
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If consumer's price index number changes from 100 to 352 and the salary of a person was 550 in order to maintain the same standard of living, his expected salary is?
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