Use the Consumer Price Index Below to Answer the Question

question 255

Essay

Use the Consumer Price Index below to answer the question. $$\begin{array}{l}\text { Average Annual Consumer Price Index (1982-1984 = 100) }\\\begin{array} { c | c | c | c | c | c } \text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \\\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \\1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \\1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \\1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \\1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \\1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \\1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \\1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \\1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6\end{array}\end{array}$$
-Between 1990 and 2000, a college raised its annual tuition fees from $4690 to $6630. Find
the relative change in the fees over that period and compare it to the overall rate of
inflation as measured by the CPI. Were the tuition increases in line with inflation?

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Definitions:

Cost of Living

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.

Absolute and Relative

Absolute pertains to values or principles that are universally valid, without relation to other things. Relative refers to something that is considered in relation or in proportion to something else.

Define Poverty

Entails a condition where an individual or community lacks the financial resources and essentials for a minimum standard of living.

Poverty Line

A threshold used to determine the minimum level of income required to secure the necessities of life.