Questionin 2008 annie an 80-year-old is telling her, Ask an Expert

Economics

Question:

"In 2008, Annie, an 80-year-old, is telling her granddaughter Susie about the good old days. Annie says that in 1938, you could buy a nice house for $15,000 and a jacket for $5.

Susie says that today such a house costs $220,000 and such a jacket costs $70. The CPI in 1938 was 14.1 and in 2008 it was 215.3.

Which house and which jacket have the lower prices?"

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91523963

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