Author Question: What does it mean if the purchasing power in 1950 was 4.15 relative to the 1982 base year? a. It ... (Read 54 times)

Alygatorr01285 · **on:** Jun 30, 2018

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