Question-01: The following table shows the average retail price of butter and the Consumer Price Index from 1980 to 2010, scaled so that the CPI 100 in 1980. 1980 1990 2000 2010 CPI 100 158.56 208.98 218.06 Retail price of butter (salted, grade AA, per lb.) $1.88 $1.99 $2.52 $2.88 Calculate the real price of butter in 1980 dollars. Has the real price increased/decreased/ stayed the same from 1980 to 2000? From а. 1980 to 2010? b. What is the percentage change in the real price (1980 dollars) from 1980 to 2000? From 1980 to 2010? Convert the CPI into 1990 ] 100 and determine the real price of с. butter in 1990 dollars. d. What is the percentage change in the real price (1990 dollars) from 1980 to 2000? Compare this with your answer in (b). What do you notice? Explain.
Question-01: The following table shows the average retail price of butter and the Consumer Price Index from 1980 to 2010, scaled so that the CPI 100 in 1980. 1980 1990 2000 2010 CPI 100 158.56 208.98 218.06 Retail price of butter (salted, grade AA, per lb.) $1.88 $1.99 $2.52 $2.88 Calculate the real price of butter in 1980 dollars. Has the real price increased/decreased/ stayed the same from 1980 to 2000? From а. 1980 to 2010? b. What is the percentage change in the real price (1980 dollars) from 1980 to 2000? From 1980 to 2010? Convert the CPI into 1990 ] 100 and determine the real price of с. butter in 1990 dollars. d. What is the percentage change in the real price (1990 dollars) from 1980 to 2000? Compare this with your answer in (b). What do you notice? Explain.
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 4.8P
Related questions
Question
![Question-01:
The following table shows the average retail price of butter and the
Consumer Price Index from 1980 to 2010, scaled so that the CPI 100 in
1980.
1980 1990
2000 2010
CPI
100
158.56 208.98218.06
Retail price of butter
(salted, grade AA, per lb.) $1.88 $1.99 $2.52 $2.88
Calculate the real price of butter in 1980 dollars. Has the real
price increased/decreased/ stayed the same from 1980 to 2000? From
а.
1980 to 2010?
b.
What is the percentage change in the real price (1980 dollars)
from 1980 to 2000? From 1980 to 2010?
с.
Convert the CPI into 1990 ] 100 and determine the real price of
butter in 1990 dollars.
d.
What is the percentage change in the real price (1990 dollars)
from 1980 to 2000? Compare this with your answer in (b). What do
you notice? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fca289220-e939-4566-8d98-6af891903102%2F611697ab-57e8-4f0b-9a63-ca8c10bca5d6%2Fxr0rbx8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question-01:
The following table shows the average retail price of butter and the
Consumer Price Index from 1980 to 2010, scaled so that the CPI 100 in
1980.
1980 1990
2000 2010
CPI
100
158.56 208.98218.06
Retail price of butter
(salted, grade AA, per lb.) $1.88 $1.99 $2.52 $2.88
Calculate the real price of butter in 1980 dollars. Has the real
price increased/decreased/ stayed the same from 1980 to 2000? From
а.
1980 to 2010?
b.
What is the percentage change in the real price (1980 dollars)
from 1980 to 2000? From 1980 to 2010?
с.
Convert the CPI into 1990 ] 100 and determine the real price of
butter in 1990 dollars.
d.
What is the percentage change in the real price (1990 dollars)
from 1980 to 2000? Compare this with your answer in (b). What do
you notice? Explain.
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