Homework Answers
Here,
Initially Price of Gas = 35 cents
CPI = 40.2
After 40 years ,
CPI = 124.62
So real price of gas = (124.62 - 40.2)/40.2 * 35 = 73.5 cents
Nominal price of gas = $1.26
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Across a forty-year period the price of gas increased from 35 cents to $1.26. At the...
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