ANSWER:

a) Fallen

Step 1: Calculate the percentage increase in income

$$\text{Percentage Increase in Income} = \frac{51,000 - 39,000}{39,000} \times 100 = \frac{12,000}{39,000} \times 100 \approx 30.77\%$$

Step 2: Calculate the percentage increase in CPI

$$\text{Percentage Increase in CPI} = \frac{169 - 122}{122} \times 100 = \frac{47}{122} \times 100 \approx 38.5\%$$

Comparison

• Percentage Increase in Income: approximately 30.77%
• Percentage Increase in CPI: approximately 38.5%

Since the percentage increase in the CPI (38.5%) is greater than the percentage increase in your income (30.77%), your standard of living has likely fallen because the cost of living increased more than your income did.