It can be an interesting exercise to compare the purchasing power of the dollar over different periods in history. Go to https://www.bls.gov/data/inflation_ calculator.htm to find the inflation calculator. Use this calculator to answer the following questions.

a. If a new home cost $125,000 in 2017, what would it have cost in 1950?

b. The average annual household income in 2017 was about $50,000. What would this income have been in 1945?

c. An average new car cost about $25,000 in 2017.

What would this car have cost in 1945?

d. Using your results from parts (b) and (c), did the purchase of a new car consume more or less of an average household’s income in 2017 than in 1945?