The Bureau of Labor Statistics has a website (www.bls.gov) that contains a Consumer Price Index inflation calculator that uses the average CPI to adjust the purchasing power of money over different periods of time. The CPI index value has been calculated every year since 1913. The calculator indicated that $1 million in 1913 would have the same purchasing power as $23,930,909 in 2016. What was the average inflation rate over this 103-year time period?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter2: The One Lesson Of Business
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The Bureau of Labor Statistics has a website
(www.bls.gov) that contains a Consumer Price
Index
inflation calculator that uses the average CPI to adjust the purchasing power of money over different
periods of time. The CPI index value has
been calculated every year since 1913. The calculator
indicated that $1 million in 1913 would have
the same purchasing power as $23,930,909 in
2016. What was the average inflation rate over this
103-year time period?

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