Suppose the Tooth Fairy paid 50 cents for a tooth in 1970 . The CPI in 1970 was 38.8, while the CPI in 2010 was 218.1 . What is the value of the Tooth Fairy's payment in 2010 dollars?
$2.81
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According to the new classical system, an unanticipated increase in the money stock
a. will shift the aggregate supply schedule only. b. will shift the aggregate demand schedule only. c. will shift both the aggregate demand and aggregate supply schedules. d. None of the above
When using the traditional command-and-control approach to environmental regulation, the government attempts to:
a. set a minimum requirement and then allows the firm to determine the most efficient method for achieving this requirement. b. determine the most efficient method for different industries. c. make allowances for differences across industries and between firms. d. set standards that are applicable to all situations and does not recognize unique circumstances.
In a laissez-faire system, the price mechanism dictates the production planning decisions.
Answer the following statement true (T) or false (F)
Inflation makes it difficult to distinguish relative price changes from changes in the general level of prices. Consequently, inflation ________ the efficiency of the market system.
A. decreases B. increases C. does not change D. may either increase or decrease