A mid-80's California diner menu had large fountain soft drinks priced at 80 cents.Assuming all of Doc's $50 had to be spent on Pepsi in 2015, and assuming that drink prices increased at the same rate as all prices, about how much inflation didBack to the Future IIpredict for the 1985-2015 period, in total?

a.About 6%.

b.About 60%.

c.About 600%

d.About 6,000%

Use the spreadsheet data file to calculate the actual inflation rate from 1985 to 2015.Take the all-items Consumer Price Index (series 19).The inflation rate from 1985 to 2015 was closest to

a.1.2%

b.12.0%

c.120%

d.1,200%

What must have happened between 1985 and 2015, according toBack to the Future II, to cause the inflation rate implied by Doc Brown's $50?

a.A Great Depression must have caused a huge reduction in real GDP.

b.There must have been a huge increase in the quantity of money.

c.The unemployment rate must have remained above 5% for most of the 30-year period.

d.Advances in technology must have caused a huge increase in potential output.