Suppose the price of bread (not adjusted for inflation) in a country is $3.00 in 2015 and it was $2 back in 1980. If the 2015 CPI is 240 and the 1980 CPI is 110, then which of the following statements is correct?
a. The real price of bread has stayed the same from 1980 to 2015
b. The real price of bread has increases from 1980 to 2015
c. The real price of bread has decreased from 1980 to 2015
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- May 02, 2018 at 12:50am