33.(Consider This)  How was the practice of clipping coins during feudalism contributing to inflation?  Who benefited from this inflation?

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Chapter7: Unemployment And Inflation
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33.(Consider This)  How was the practice of clipping coins during feudalism contributing to inflation?  Who benefited from this inflation?

34.What is core inflation?  Why is it used?

35.Answer the next four questions based on the following data using year 1 as the base year.  All dollars are in billions.

Year

Nominal income

CPI

1

$3166

100

2

3402

114

3

3774

108

4

3989

112

(a)Find real income in year 4.

(b)What was the percentage rise in prices between years 1 and 3?

(c)What was the percentage rise in prices between years 2 and 4?

(d)What was the increase in real income from year 3 to year 4 in percentage?

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