Brief Principles of Macroeconomics...
Brief Principles of Macroeconomics...
Over a long period of time, the price of a candy bar rose from $0.20 to $1.20. Over the same period, the CPI rose from 150 to 300. Adjusted for overall inflation, how much did the price of the candy bar change?
Calculating the real increase in price.
The rise in price and inflation is calculated using the following formula:
The percentage increase in price is 500% which is a six fold increase
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