n 1964, one could buy a chili dog and a root beer for $1.25. Today the same chili dog and root beer cost $2.95. Which pair of CPIs would imply that the cost in today’s dollars was the same for both meals? 80 in 1964 and 112 today 6 0 in 1964 and 141.6 today 75 in 1964 and 126.4 today 90 in 1964 and 108.5 today

n 1964, one could buy a chili dog and a root beer for $1.25. Today the same chili dog and root beer cost $2.95. Which pair of CPIs would imply that the cost in today’s dollars was the same for both meals?

80 in 1964 and 112 today 6

0 in 1964 and 141.6 today

75 in 1964 and 126.4 today

90 in 1964 and 108.5 today

 

 

Answer:

Answer is part B of having 60 in 1964 and 141.6 today

for example 2.95 -1.25/1.25 = 1.36% or say 36% inflation rise

similarly 141.6-60/60=1.36% which is 36% inflation rise

Asked on February 15, 2018 in economics.
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