What does it mean if the purchasing power in 1950 was 4.15 ...

[Alygatorr01285]

What does it mean if the purchasing power in 1950 was 4.15 relative to the 1982 base year?
 a. It took 4.15 in 1950 to buy what 1 bought in 1982.
  b. The average price level in 1982 was five times as high as in 1950.
  c. 4.15 in 1950 had the same nominal money value as 1 in 1982.
  d. It took 4.15 in 1982 to buy what 1 bought in 1950.
  e. Nominal prices have increased by more than 400 percent between 1950 and 1982, but the real value of money has not changed.

Question 2

The fallacy of composition states that even if something is true for an individual, it is not necessarily true for many individuals as a group.
 a. True
  b. False
  Indicate whether the statement is true or false

[micaelaswann]

Answer to Question 1

d

Answer to Question 2

True

[Alygatorr01285]

TYSM

[strudel15]

Excellent