Inflation and Purchasing Power Answers

Atlanta, GA has a CPI of 168. Seattle, WA has a CPI of 204. How does the purchasing power of an Atlanta resident earning a $32,800 salary compare to the purchasing power of a Seattle resident earning a $46,400 salary?a.The Atlanta resident has $34.46/CPI more than the Seattle resident.b.The Atlanta resident has $83.20/CPI more than the Seattle resident.c.The Seattle resident has $48.74/CPI more than the Atlanta resident.d.The Seattle resident has $32.21/CPI more than the Atlanta resident.

Sofa pillows cost $26.80 each when the CPI is 159. In 1983, how many sofa pillows could you buy with $125?a.fourb.sixc.sevend.eight

The CPI is currently 153. If a coffee maker costs $31.90 today, how much did one cost in 1983, to the nearest cent?a.$20.85b.$21.20c.$26.60d.$48.81

The prices of consumer goods do not always exactly follow the CPI. The following chart shows several consumer items, along with their respective prices in 1983 and today.ItemPrice in 1983 ($)Current Price ($)Shower curtain8.8515.66Floor rug71.25119.75T-shirt13.9523.99Oscillating fan22.7537.50Using the prices shown on this chart, which of the following is a reasonable estimate of the current CPI?a.164b.170c.185d.199

A raincoat costs $79.25 today. If a similar raincoat cost $52.48 in 1983, what is the CPI?a.166b.151c.132d.127

In 1983, a microwave oven cost $78.75. Today, a microwave oven costs $92.66. If the CPI is 177, what is the relation of the actual price of a microwave oven to the expected price, to the nearest cent?a.The actual price is $46.73 lower than the expected price.b.The actual price is $5.59 lower than the expected price.c.The actual price is $13.91 higher than the expected price.d.The actual price is $71.35 higher than the expected price.

What is inflation?a.unemployment and the subsequent loss of productionb.a slow, steady raise in average wagesc.an increase in taxesd.a devaluing of money, resulting in a loss of purchasing power

Which of the following is not considered when calculating a country’s GDP?a.goods produced by government agencies or commissionsb.goods produced in the country by people who are not citizensc.services produced in the countryd.goods produced by citizens of the country who are currently overseas

A bicycle helmet cost $41.40 in 1983. What will a bicycle helmet cost when the CPI is 186? Round to the nearest cent.a.$222.58b.$144.60c.$77.00d.$72.30