If the Price Index in 1922 Was 17 and a Unit

question 26

Multiple Choice

If the price index in 1922 was 17 and a unit of Nabisco Oreo cookies cost $0.32,and if the price index today is 220 and a unit of Nabisco Oreo cookies costs $2.99,then the inflation-adjusted price of Oreos today is

• A) almost exactly the same (within 10 percent)as in 1922.
• B) much higher (twice or more)than in 1922.
• C) much lower (half or less)than in 1922.
• D) a bit higher than in 1922.
• E) a bit lower than in 1922.

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Definitions:

Birth

The act or process of bearing or bringing forth offspring.

Innominate Bone

Another term for the hip bone, which is formed by the fusion of the ilium, ischium, and pubis bones.

Ischium

One of the three bones that make up the pelvis, located in the lower part of the pelvis.

Ilium

The large, broad bone forming the upper part of each half of the pelvis.