Economics 12th Edition by William Baumol, Alan S Blinder

Exercise 4

Below you will find the yearly average values of the Dow Jones Industrial Average, the most popular index of stock market prices, for five different years. The Consumer Price Index for each year (on a base of 1982- 1984 = 100) can be found on the inside back cover of this book. Use these numbers to deflate all five stock market values. Do real stock prices always rise every decade