Suppose we want to know how much money your grandparents would have to earn now to have purchasing power equivalent to their income in 1969. We could:
A. translate their nominal income in 1969 into constant, real dollars of today.
B. translate their nominal income today into 1969 dollars.
C. take a ratio of their income today with their income from 1969.
D. None of these statements is true.
Answer: A
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