he CPI in 1974 equaled 0.49. The CPI in 1975 equaled 0.54. Use the CPI from both years to answer he following two questions. .) The rate of inflation between 1974 and 1975 was [ Select ] percent. .) Let's say that average family incomes increased by 8% from 1974 to 1975 in nominal terms. This mplies that the average real income for families in 1975 [Select ] , compared to neir purchasing power in 1974.
he CPI in 1974 equaled 0.49. The CPI in 1975 equaled 0.54. Use the CPI from both years to answer he following two questions. .) The rate of inflation between 1974 and 1975 was [ Select ] percent. .) Let's say that average family incomes increased by 8% from 1974 to 1975 in nominal terms. This mplies that the average real income for families in 1975 [Select ] , compared to neir purchasing power in 1974.
Chapter1: Making Economics Decisions
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![The CPI in 1974 equaled 0.49. The CPI in 1975 equaled 0.54. Use the CPI from both years to answer
the following two questions.
a.) The rate of inflation between 1974 and 1975 was
[ Select ]
percent.
b.) Let's say that average family incomes increased by 8% from 1974 to 1975 in nominal terms. This
implies that the average real income for families in 1975 [ Select ]
, compared to
their purchasing power in 1974.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F314f0635-1dd9-4d26-9205-7f03c7b2e19c%2F99316f86-8683-498a-a84a-8f7d89f81e98%2F33hb4pq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The CPI in 1974 equaled 0.49. The CPI in 1975 equaled 0.54. Use the CPI from both years to answer
the following two questions.
a.) The rate of inflation between 1974 and 1975 was
[ Select ]
percent.
b.) Let's say that average family incomes increased by 8% from 1974 to 1975 in nominal terms. This
implies that the average real income for families in 1975 [ Select ]
, compared to
their purchasing power in 1974.
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