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  • 1. What is the base year for the data you see here?
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  • 2. What is the general trend of the numbers?
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  • 3. Would todays dollar buy more or less than a dollar in 1913?
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  • 4. Do you notice anything different about the CPI from 1930-1933? Why do you think this is?
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  • 5. Using the CPI information at this website, use the above formula to solve the following problems. Show your calculations! How much would a year 2000 model car that costs $20,000 have cost in… a) 1933 b) 1970 c) 1990
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  • 6. How much did a newspaper ($1.50 Year 2000) cost in… a) 1933 b) 1960 c) the year you were born [for example: 1981]
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  • 7. If you had borrowed a dollar in each of the following years (to be paid back in the year 2000) how much would that $1 worth of goods cost in year 2000 prices? a) 1920 b) 1933 c) the year you were born [for example: 1981] d) 1990 What is the value of the goods the lender will be able to buy when you pay him back?
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  • 8. Your income in each of the following years is $1. What is the value of goods you could purchase with that dollar at year 2000 prices? a) 1920 b) 1932 c) 1960 d) 1990
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