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5.) Based on the following table, determine if these goods cost more now in real

ID: 1180155 • Letter: 5

Question

5.)  Based on the following table, determine if these goods cost more now in real terms than they did in 1947. (You will need to find the CPI for 1947 and 2012.  A good place to find this is www.bls.gov).

ITEM

1947 Price

2012 Price

a.  U of   Iowa tuition

$130

$5470

b. Gallon of gas

$0.23

$3.60

c.  Phone call from NY to L.A.

$2.50

$0.25

d) 1 day hospital stay

$35

$2700

e) McDonald

  

ITEM

     

1947 Price

     

2012 Price

     

a.  U of   Iowa tuition

     

$130

     

$5470

     

b. Gallon of gas

     

$0.23

     

$3.60

     

c.  Phone call from NY to L.A.

     

$2.50

     

$0.25

     

d) 1 day hospital stay

     

$35

     

$2700

     

e) McDonald

Explanation / Answer

ITEM

1947 Real Price

2012 Real Price

a. U of Iowa tuition

$582.95

$2383.13

b. Gallon of gas

$1.03

$1.56

c. Phone call from NY to L.A.

$11.21

$0.10

d) 1 day hospital stay

$35

$1176.31

e) McDonald

ITEM

1947 Real Price

2012 Real Price

a. U of Iowa tuition

$582.95

$2383.13

b. Gallon of gas

$1.03

$1.56

c. Phone call from NY to L.A.

$11.21

$0.10

d) 1 day hospital stay

$35

$1176.31

e) McDonald

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