Question

Please type answer The Consumer Price Index (CPI) is just one price index that we use to measure inflation. The CPI was 33.4 in 1967 and 160.5 in 1997. Dividing 160.5 by 33.4 yields a factor of 4.8, so if Dr. Evil thought that one million dollars was a lot of money in 1967, an equivalent amount in 1997 would be $4.8 million. Imagine if you were cryogenically frozen in the 1960s and revived 30 years later. Changes in societal behavior, advances in technology, and even higher prices would all come as a shock to you! Find the price of a product in the past. You can search various websites for historical prices of popular products. One possibility is Historic Food Prices. Use the following Bureau of Labor Statistics table, which shows all the annual average CPIs for all years since 1913, to convert the price of the product you chose to the most recent dollar amount, as we did with Dr. Evil’s $1 million. Make sure you also address the following questions: a) How does inflation affect our economy and the people in it? Who does it hit the hardest? How can you protect yourself against inflation? Please type answer

Answer 1

SOLUTION;-

GIVENDATA;-

The consumer price index (CPI) is just one of price that we use to measure inflation.

!) The CPI was 33.4 in 1967 and 160.3 in 1997.

2) Dividing 160.5 by 83.4 yields a factor of 4.8

3) Dr. Evil thought that one million on dollars was a lot of money in 1967 equivalent amount in 1997 would be 4.8 billion

4) imagine if you are cryogenically frozen in 1960 and revived 30 years lottery.

#) HOW THE INFLATION AFFECT OUR ECONOMY AND THE PEOPLE IN IT.

The inflation of food article =CPI 1997/CPI1967=4.8

Price of sugar in 1967=60 conts for 5 points and according to CPI while be around 60(4.8)=2 dollars 88 conts for 5 pounds in 1997

1) Inflation decreases standards of people it reduce trust of people on Govt .income 1X redistibuted in favour of rich at expend of poor

2) Lenders loose while as those who take loans goin it can lead to ours throw of gout and revolution saving is discouraged and people invest in non production items like gold land etc.

3) Exange rate rises exports fall and import olise in in short it is quit harmfull

#) WHO DOES IT HIT THE HARDEST ;-

Price of sugar in 1960=60 conts for 5 points

1967 CPI=33.4

2017 CPI=245.120

Ratio is 295.120 / 33.4

=7.4

So, 2017 sugar price =60 (7.4) =4 dollars 44 conts

1) It hits hordest the poor people whose income is conts and fixed

#) HOW CAN PROTECT YOUR SELF AGAINST INFORMATION ;-

Price of milk in 1967=1.15 per gallon

CPI in 1967=33.4

CPI in 2017=245.120

Ratio= 245.120 / 33,4=7.3

Price in 2017 =1.15 (7.3) =8.395 dollars

The protection can be achieved by including in idlution indexed bounds and to link wage rise with CPI