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Unformatted text preview: prices) How do I use the CPI to put current values in baseyear prices? • Divide the current value by the CPI, then multiply times 100. • For example: Current salary in baseyear prices = (2011 salary)*(base year costofliving) ÷ (current year cost of living) = (2011 salary)*100 ÷ (2011 CPI) How do I use the CPI to put current values in another year’s prices? • Multiply current salary by the ratio of the “other” year’s CPI to this year’s CPIFor example: Current salary in other year’s prices = (2011 salary)*(19XX CPI) ÷ (2011 CPI) = (2011 salary)*(19xx Cost of Living) ÷ (2011 Cost of Living)...
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This note was uploaded on 03/28/2012 for the course ECON 102 taught by Professor Drozd during the Fall '08 term at University of Wisconsin.
 Fall '08
 Drozd

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