Inflation and Purchasing Power Answers

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In 1983, a hardcover dictionary cost $145.75. If the CPI is currently 209, what would a hardcover dictionary cost today? Round to the nearest cent.

A
$354.75
B
$304.62
C
$254.75
D
$209.00
27

In 1983, a year-long newspaper subscription cost $12.75. Today, a year-long newspaper subscription costs $28.50. If the CPI is 193, what is the relation of the actual price of a year-long newspaper subscription to the expected price, to the nearest cent?

A
The actual price is $14.79 higher than the expected price.
B
The actual price is $3.89 higher than the expected price.
C
The actual price is $9.20 lower than the expected price.
D
The actual price is $11.86 lower than the expected price.

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