Question

suppose you need $21,000 to maintain a particular standard of living in 1978. How much would you have needed in 1998 to maintain the same standard of living? Assume that all prices have risen at the same rate as the CPI

978. on! Year 1039 1995 CPI I 44.4 49.3 53.8 56.9 60.6 65.2 72.6 82.4 90.9 96.5 99.6 Year Year 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 CPI 152.4 156.9 160.5 163.0 166.6 172.2 deb CPI 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 107.6 109.6 113.6 118.3 124.0 130.7 136.2 140.3 144.5 148.2 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 179.9 184.0 e sc 188.9 195.3 ScO Average Annual Consumer Price Index (CPI) (1982-1984-100) e sco

Show transcribed image text 978. on! Year 1039 1995 CPI I 44.4 49.3 53.8 56.9 60.6 65.2 72.6 82.4 90.9 96.5 99.6 Year Year 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 CPI 152.4 156.9 160.5 163.0 166.6 172.2 deb CPI 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 107.6 109.6 113.6 118.3 124.0 130.7 136.2 140.3 144.5 148.2 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 179.9 184.0 e sc 188.9 195.3 ScO Average Annual Consumer Price Index (CPI) (1982-1984-100) e sco