5114296 Correct 10998582 6611250 8508225 750008815 X12927 X10998582 Question 32

5114296 correct 10998582 6611250 8508225 750008815

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$51142.96 Correct! $109985.82 $66112.50 $85082.25
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75000/.8815 = X/1.2927, X=109985.82 Question 32 3 / 3 pts A friend of mine came to Penn State in the 1970s and told me that sticky buns at the College Diner cost $.75 (75 cents) in December of 1976. The CPI in December of 1976 was 58.4 and in December of 2012, the CPI was 230.979. Use this CPI data and assuming that the price of sticky buns rose in exact proportion to the CPI, what would the price of sticky buns have to be in December of 2012 so that the ‘real price’ of sticky buns remained constant? $29.70 Correct! $2.97 $17.99 $17985.56 .75/.584 = X/2.30979, X=2.97 Part 2: 2 questions at 2 points each for a total of 4 points Question 33 2 / 2 pts G overnment spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services. True Correct! False Question 34 2 / 2 pts If inflation is anticipated, some effects of inflation on the redistribution of income can be avoided. Correct! True False
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