Price indexes can be used to compare prices across different periods. Suppose that a year of tuition for college at public insti
tutions averaged a cost of â$ in 1989 and that the CPI index was in 1989. If the CPI index was inâ 2009, then the cost of tuition inâ 2009, as the result ofâ inflation, would equal â$ ___________. â(Enter your response rounded to the nearest wholeâ number.) Suppose that the actual average cost of tuition in 2009 was â$. Relative to the expected cost computedâ above, the cost of tuition increased by __________ the same as less than the amount of inflation.
1 answer:
Question attached
Answer:
1. $3586
2. More than the amount of inflation
Explanation:
Consumer price index 1989 = 114
Price 1989 = $1817
Price for 2009=Consumer price index for 2009 / Consumer price jndex 1989 = Price 2009 / Price 1989
= 225 / 114 = Price 2009 / $1817
= Price for 2009 = $3586
cost of tuition increased in 2009 by = $3307 that is 6893 - 3586 more than amount of inflation
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