In 1970, the price of a Big Mac was $0.50. Use the information in the table below to find the price of a Big Mac in 2006 dollars. Year CPI 38.8 1970 2006 201.6 Source: Bureau of Labor Statistics. Base year=1962-84. The value of a 1970 Big Mac in 2006 dollars is $. (Round your answer to two decimal places.) The actual price of a Big Mac in 2006 was approximately $2.99. Thus the price of Big Macs has risen the cost of living.

In 1970, the price of a Big Mac was $0.50. Use the information in the table below to find the price of a Big Mac in 2006 dollars. Year CPI 38.8 1970 2006 201.6 Source: Bureau of Labor Statistics. Base year=1962-84. The value of a 1970 Big Mac in 2006 dollars is $. (Round your answer to two decimal places.) The actual price of a Big Mac in 2006 was approximately $2.99. Thus the price of Big Macs has risen the cost of living.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 10CQ

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