Question
In 2018, Annie, an 80-year-old, is telling her granddaughter Mary about the good old days. Annie says that in 1934, you could buy a nice
In 2018, Annie, an 80-year-old, is telling her granddaughter Mary about the good old days.
Annie says that in 1934, you could buy a nice house for $15,000 and a jacket for $5. Mary says that in 2018 such a house costs $250,000 and such a jacket costs $60
The CPI in 1934 was 15.2 and in 2018 it was 2454
Which house has the lower real price? Which jacket has the lower real price?
The house with the lower price is the_______
and the jacket with the lower price is the______
A. $15,000 house in 1934, 560 jacket in 2018
B. $250,000 house in 2018 $80 jacket in 2018
C. $15,000 house in 1934 $5 jacket in 1934
D. $250,000 house in 2018: 55 jacket in 1934
Please give me the correct answer with explanation and conclusion.
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