Suppose that the CPI is currently 300 and was 50 in 1950. Then, according to the CPI, $1 in 1950 purchased the same amount of goods and services as what amount today?

Question

Quizplus · Accepted Answer

The CPI increase from 1950 to the present can be calculated as (300 - 50) / 50 = 5. This means $1 in 1950 has the same buying power as $6 today, because you multiply the original amount by the factor (5) plus the original amount ($1 * 5 + $1 = $6).

Suppose That the CPI Is Currently 300 and Was 50