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Inflation. Why does it not always add up?. What is Inflation?. Definition - PowerPoint PPT Presentation
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InflationWhy does it not always add up?
What is Inflation?Definition
Inflation is a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.
In other wordsWhat cost you $100 in 2000Cost you $125.26 according to the Bureau of
Labor Statistics
Cost from then to now This is the price of a
Ford Coupe in 1926$520 How much would
this car cost today? Bureau of Labor Stat
istics Inflation rate Calculator
$6,336.74
Cost from now to thenFord Coupe 2010$20,995 - $35,995What would this cost
in 1926?Bureau of Labor Stat
istics Inflation rate Calculator
$1,722.87 - $2,953.79
Why such a difference?The coupe back then a lower model?
Cost from then to nowIn 1921 the Cadillac
touring model cost$3940How much would
this cost today?Bureau of Labor Stat
istics Inflation rate Calculator
$48,013.02
Cost from now to thenCadillac touring
model 2009$36,560 - $58,575How much would
this cost in 1921?http://
www.bls.gov/data/inflation_calculator.htm
$3,034.05 - $4,861.04
The Comparison Then NowFord Coupe 1926
$520Ford Coupe 2010
$1,722 - $1,953Cadillac 1921
$3940Cadillac 2009
$36,560 - $58,575
Ford Coupe 1926$6,336
Ford Coupe 2010$20,995 - $35,995
Cadillac 1921$48,013.02
Cadillac 2009$36,560 - $58,575
Why the difference? Why is there a difference with the Ford but
the Cadillac is closer to the same?
Cost from then to nowBuick Touring Car
Model-D 1921 $650.00 http://www.bls.gov/d
ata/inflation_calculator.htm
$7,832.43
Cost from now to thenBuick LaCrosse
2010$27,085 - $33,015http://
www.bls.gov/data/inflation_calculator.htm
$2,247.74 - $2,739.86
Why the difference?Again there is a big difference why?
Comparable?
Comparable?Hudson Coach 1926 Kia Soul 2009Cost then
$1,165Cost now
$14,196.74
Cost then$1,093.87 - $1,390.94
Cost now$13,300 - $16,950
Does this transcend other areas?
Assignment Options Research Paper Research ProjectExplain why vehicle
prices have exceeded the inflation rate. 3 page minium
Take a given 10 year period and chart the price trends for 6 items over that period. And graph the trend to determine future prices.
Research project ExampleYear Bread Milk Gas House Income Car
1930 1 $0.08 $0.56 $0.25 $7,146 $1,612 $5251931 2 $0.08 $0.50 $0.25 $6,796 $1,527 $5301932 3 $0.07 $0.43 $0.18 $6,515 $1,431 $5401933 4 $0.07 $0.41 $0.18 $5,759 $1,409 $5501934 5 $0.08 $0.45 $0.19 $5,972 $1,506 $5751935 6 $0.08 $0.47 $0.19 $6,296 $1,594 $5801936 7 $0.08 $0.48 $0.19 $6,145 $1,672 $6101937 8 $0.09 $0.50 $0.20 $6,622 $1,789 $6751938 9 $0.09 $0.50 $0.20 $6,420 $1,808 $7101939 10 $0.08 $0.49 $0.19 $6,146 $1,837 $750
0.15
0.17
0.19
0.21
0.23
0.25
0.27
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
Cost
Year
Average Cost of a Gallon of Gas
Standard Deviation High
Line of Best Fit
Standard Deviation Low
Actual Cost
Any Questoins?