Why 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

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

http://www.bls.gov/data/inflation_calculator.htm



Cost from now to thenFord Coupe 2010$20,995 - $35,995What would this cost

in 1926?Bureau of Labor Stat


$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


$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 $530

1932 3 $0.07 $0.43 $0.18 $6,515 $1,431 $540

1933 4 $0.07 $0.41 $0.18 $5,759 $1,409 $550

1934 5 $0.08 $0.45 $0.19 $5,972 $1,506 $575

1935 6 $0.08 $0.47 $0.19 $6,296 $1,594 $580

1936 7 $0.08 $0.48 $0.19 $6,145 $1,672 $610

1937 8 $0.09 $0.50 $0.20 $6,622 $1,789 $675

1938 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

Co

st

Year

Average Cost of a Gallon of Gas

Standard Deviation High

Line of Best Fit

Standard Deviation Low

Actual Cost

Any Questoins?

Documents

Why 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