2. The CPI was 96 in 1982, and the CPI was 208 in 2010. How much money would you have needed in 2010 in order to buy what you could have bought with $500 in 1982 or to put it another way, what is the value of $500 earned in 1982 in 2010 dollars? TI

2. The CPI was 96 in 1982, and the CPI was 208 in 2010. How much money would you have needed in 2010 in order to buy what you could have bought with $500 in 1982 or to put it another way, what is the value of $500 earned in 1982 in 2010 dollars? TI

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Fill in the blanks.
1. A steel company sells some steel to a bicycle
company for $150. The bicycle company uses
the steel to produce a bicycle, which it sells
for $250. Taken together these two
transactions contribute how much to GDP?
2. The CPI was 96 in 1982, and the CPI was 208
in 2010. How much money would you have
needed in 2010 in order to buy what you
could have bought with $500 in 1982 or to
put it another way, what is the value of $500
earned in 1982 in 2010 dollars?
3. The consumer price index was 225 in 2006
and 234 in 2007. The nominal interest rate
during this period was 6.5 percent. What was
the real interest rate during this period?

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