Principles of Economics (Looseleaf) (Custom)
7th Edition
ISBN: 9781305001640
Author: Mankiw
Publisher: CENGAGE L
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Chapter 24.2, Problem 2QQ
To determine
The calculation of present worth of paycheck.
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Q)General Electric paid its workers $5 a day in 1914. If the consumer price index was 10 in 1914 and 230 in 2021, how much is the GE paycheck worth in 2021 dollars?
Consider a telephone call to London that currently would cost $5. If the real price oftelephone calls does not change in the future, how much will it cost you to make a call to London in 50 years if the inflation rate is 5% (roughly its average over the past 30 years)? What if inflation is 10%.
You can use a price index to study the buying habits of individuals? True or false
Chapter 24 Solutions
Principles of Economics (Looseleaf) (Custom)
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