.ull T-Mobile ? *2:21 AM@ O 5% 4A myopenmath.comHow to calculate the inflationrate for food, 1913-2021Start with the inflation rate formula:CPI in 2021/CPI in 1913 * 1913 USD value = 2021USD valueThen plug in historical CPI values from above. TheCPI for Food was 9.923 in the year 1913 and270.938 in 2021:270.938/9.923 * $20 = $546.08Therefore, according to the U.S. Bureau of LaborStatistics, $20 in 1913 has the same "purchasingpower" as $546.08 in 2021 (in the CPI category offood).Use the highlighted info above to answer each questionbelow. Round appropriately to the context.a. The absolute change in the cost of food from 1913to 2021 was | 261.012$Calculation: 261.015b. The rate of change in the cost of food from 1913 to2021 was$/year

The change in the cost of an average market basket of consumer goods and services is measured by a…

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Use the highlighted info above to answer each question below, Round appropriately to the context.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 26CTQ: Describe a situation, either a government policy situation, an economic problem, or a private sector...

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Question

.ull T-Mobile ? *
2:21 AM
@ O 5% 4
A myopenmath.com
How to calculate the inflation
rate for food, 1913-2021
Start with the inflation rate formula:
CPI in 2021/CPI in 1913 * 1913 USD value = 2021
USD value
Then plug in historical CPI values from above. The
CPI for Food was 9.923 in the year 1913 and
270.938 in 2021:
270.938/9.923 * $20 = $546.08
Therefore, according to the U.S. Bureau of Labor
Statistics, $20 in 1913 has the same "purchasing
power" as $546.08 in 2021 (in the CPI category of
food).
Use the highlighted info above to answer each question
below. Round appropriately to the context.
a. The absolute change in the cost of food from 1913
to 2021 was | 261.01
2$
Calculation: 261.015
b. The rate of change in the cost of food from 1913 to
2021 was
$/year

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