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Real price of butter 1980 1.96 CPI 1990 1.22 as decreased 1980 dollars) from 1980 to 2000? 6. (Enter your response rounded to two decimal places.) ine the real price of butter in 1990 dollars. the table below. (Enter your responses rounded to two decimal places in the table below.) 1980 2000 1.13 1990 100 2000 2010 1.43 2010

Real price of butter 1980 1.96 CPI 1990 1.22 as decreased 1980 dollars) from 1980 to 2000? 6. (Enter your response rounded to two decimal places.) ine the real price of butter in 1990 dollars. the table below. (Enter your responses rounded to two decimal places in the table below.) 1980 2000 1.13 1990 100 2000 2010 1.43 2010

Macroeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 10CQ
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Suppose that the following table shows the average retail price of butter (the price of salted, grade AA butter per pound) and the Consumer Price Index (CPI) from 1980 to 2010, scaled so that the CPI = 100 in 1980. 1980 2010 100.00 1.96 218.06 3.12 CPI Retail price of butter Calculate the real price of butter in 1980 dollars. (Enter your responses rounded to two decimal places in the table below.) Real price of butter 1980 1.96 CPI 1990 158.56 1.94 1980 1990 1.22 Between 1980 and 2000, the real price of butter has decreased What is the percentage change in the real price (in 1980 dollars) from 1980 to 2000? The real price of butter has decreased by 42.35 %. (Enter your response rounded to two decimal places.) Next, convert the CPI into 1990 = 100 and determine the real price of butter in 1990 dollars. To do this, first convert the CPI into 1990 dollars in the table below. (Enter your responses rounded to two decimal places in the table below.) 1990 100 2000 208.98 2.37 2000 1.13 2000 ■ 2010 1.43 2010 □
Transcribed Image Text:Suppose that the following table shows the average retail price of butter (the price of salted, grade AA butter per pound) and the Consumer Price Index (CPI) from 1980 to 2010, scaled so that the CPI = 100 in 1980. 1980 2010 100.00 1.96 218.06 3.12 CPI Retail price of butter Calculate the real price of butter in 1980 dollars. (Enter your responses rounded to two decimal places in the table below.) Real price of butter 1980 1.96 CPI 1990 158.56 1.94 1980 1990 1.22 Between 1980 and 2000, the real price of butter has decreased What is the percentage change in the real price (in 1980 dollars) from 1980 to 2000? The real price of butter has decreased by 42.35 %. (Enter your response rounded to two decimal places.) Next, convert the CPI into 1990 = 100 and determine the real price of butter in 1990 dollars. To do this, first convert the CPI into 1990 dollars in the table below. (Enter your responses rounded to two decimal places in the table below.) 1990 100 2000 208.98 2.37 2000 1.13 2000 ■ 2010 1.43 2010 □
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