You might have heard your grandmother say, "when i was your age, candy bars cost a nickel." like candy bars, the price of fast food has increased over time. in 1957, the year burger king introduced its whopper, the price was $0.37. in 2015, a whopper cost $3.99.

Yes this is true. With the passage of time, over the years, the prices of almost all products have risen. From grocery to fuel, from housing to conveyance, from schooling to travelling etc. It is because of the inflation adjustment. Inflation is the increase in the price of goods and services over the years. With the increase in the inflation, the value of the money decreases, resulting in an increase of the prices of everything in the economy. A thing that was once purchased at 50 cents suppose, is now being purchased at say 5 dollars.  This is due to the inflation. But if we go deep inside this example, we need to look for the increase in the salaries of the people as well. Salaries also increase due to inflation.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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