In order to buy in 2006 a bundle of goods that cost $100 in 1965, you would need roughly

Question

Quizplus · Accepted Answer

This requires calculating the inflation rate from 1965 to 2006 using a consumer price index (CPI) or inflation calculator. Based on the average inflation rate of 4.19% per year during that time period, the cost of the bundle of goods would have increased by a factor of approximately 6. Therefore, you would need roughly $600 to buy that same bundle of goods in 2006.

In Order to Buy in 2006 a Bundle of Goods