Answer the Next Four Questions Based on the Following Data

question 21

Essay

Answer the next four questions based on the following data using year 1 as the base year.All dollars are in billions. (a) Find real income in year 4.(b) What was the percentage rise in prices between years 1 and 3?
(c) What was the percentage rise in prices between years 2 and 4?
(d) What was the increase in real income from year 3 to year 4 in %?

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Definitions:

Joseph McCarthy

Joseph McCarthy was an American senator known for leading the charge against alleged communist infiltration of United States government institutions during the 1950s, a period known as the McCarthy era.

Defense Department

The part of the United States federal government responsible for coordinating and supervising all agencies and functions of the government directly related to national security and the United States Armed Forces.

Communist Party

A political organization advocating the principles of communism, including the pursuit of a classless society through the overthrow of capitalism.

Taft-Hartley Act

1947 law passed over President Harry Truman’s veto; the law contained a number of provisions to weaken labor unions, including the banning of closed shops.