Question

A friend of mine came to Penn State in the 1970s and told me that sticky buns at the College Diner cost $.75 (75

cents) in December of 1976. The CPI in December of 1976 was 58.4 and in December of 2017, the CPI was 247.91. Use this CPI data and assuming that the price of sticky buns rose in exact proportion to the CPI, what would the price of sticky buns have to be in December of 2017 so that the ‘real price’ of sticky buns remained constant?

$4.35

$17.66

$3.18

$2.97

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Question 36

1 pts

If an increase in residential burglaries results in households spending more money on security systems, GDP will rise.

True

False

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