This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
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)...
View
Full Document
 Fall '08
 Drozd
 Gdp, gross domestic product, baseyear

Click to edit the document details