Find a nominal amount from a reputable source, perhaps on the internet, but maybe just from someone's memory. Find the same nominal amount at a later time at least ten years after the first. Compare the two amounts in real terms (numerically) , and then express TWO comparisons of the two real amounts. I provide an example posting. Most of you will understand the math involved...but the great challenge here is in making your conclusion consistent with your calculations!

IDENTIFY clearly the item for which you are comparing the real price/cost/value.

SHOW ALL OF YOUR CALCULATIONS in comparing the real value of the samegood/service at two different times, then express the same comparison in English. Include whether your particular good/service has led inflation or lagged inflation in that time period.

RECOGNIZE other factors such as changes in quality that should be taken into account with a comparison of this sort. (Are you really measuring the exact same thing?) CITE the Bureau of Labor Statistics site below and also the source of your nominal data (even if it is your uncle).

Nominal amounts can include an individual's wages or income, the market value of an asset like a car or a home, the price of some item or commodity, tuition rates, or even an "aggregate" like the national debt, the trade deficit, the value of output in some industry, or GDP. Beware: data presented in "constant dollars" or the dollars of some base year are already indexed for inflation.

Please use and cite the following source of historical consumer price indexdata (choose top selection: U.S. All items, 1982-84=100)from theBureau of Labor Statistics(Links to an external site.)

After clicking on the BLS link above for CPI data, choose the first item on the list (All Items, base year 1982-4) and enter. On the next page, you may expand the range of years that the data will cover. You may round to the nearest whole number for the CPI near the middle of your referenced year. (June or July)

I have posted an example called, "Postage". Please examine that before starting this assignment.

"Leading inflation" means that the real value increased over time, or the price advanced more rapidly than the cpi.

"Lagging inflation" means that the real value decreased over time, or the price advanced more slowly than the cpi.