for assistance.) 11. When Disney\'s Magic Kingdom in Orlando, Florida opened in
ID: 1158520 • Letter: F
Question
for assistance.) 11. When Disney's Magic Kingdom in Orlando, Florida opened in 1971 the price of admission was $3.50. In 2017 the ticket price was $105. The CPR index was at 39 in 1971 and 243 in 2017 (a) By how much did the nominal price of a Disney ticket increase from 1971 to 2017? (b) What was the 1971 price in the dollars of 20172 (c) By how much did the real price of a ticket increase between 1971 and 2017? 12. On a graph, illustrate both the the inflation rate and the real GDP growth rate for 2006-2016. (The data required for this exercise can be found inExplanation / Answer
1) Solution: Increase in the nominal price of a disney ticket from 1970 to 2017: $101.50
Working:
Price
CPI
1971
3.5
39
2017
105
243
105 -3.5 = 101.50
?
2) Solution: 1971 price in the dollars of 2017: $21.81
Working:
Price
CPI
Real price
1971
3.5
39
21.81
3.5*243/39
2017
105
243
?
3) Solution: Increase in the real price of a ticket increase between 1970 and 2017: $13.35
Price
CPI
Real price
1971
3.5
39
3.5
3.5*39/39
2017
105
243
16.85
105 * 39/243
16.85 - 3.5 = 13.35
?
Price
CPI
1971
3.5
39
2017
105
243
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