Question

II. Adjusting Data to Account for Inflation 2019 real value value at time t x (2019 CPI CPI at time t) A. Given the data below, calculate the 2019 equivalent sales for each movie. Who is the real all-time worldwide box office champ? Year Movie Nominal Worldwide CP Ticket Revenue 2019 (2019-252) Equivalent les 7.02 M 4.3 M 1939 Gone with the Wind 1974 Godfather II 1997 Titanic 2009 Avatar 2015 Star Wars: The Force 390M $100M $2.2B $2.8B $2.1B 14 49 160 215 237 2.23 8 Awakens (Consumer Price Index for All Urban Consumers: All Items (CPIAUCNS series) for July (http /fresearsh.stlouisfed org/fred2D and worldwide ticket revenue (www. imdb.com)) B. Given the data below, calculate the 2019 equivalent price per U.S. gallon of gasoline. Why hasn't U.S. consumers demanded alternative forms automobile/engine technology that furthers mileage efficiency? 17 24 39 Nominal Gas Price CPI (2019 252) 2019 Equivalent Price Year 1930 1950 1970 1990 2000 2010 2015 2019 $0.27 S0.35 S1.13 $1.66 $3.25 $2.00 $1.93 130 173 195 238 252 C. Calculate the inflation rate, nominal and real GDP growth. Year CPI Inflation Rate Nomima Nominal Real GDP GDP Growth Growth GDP $15.1TN.A. $15.6T S16.2T $16.7T $17.5T $18.1T Ν.Α 2010 217 2011 225 2012 228 2013 232 2014 238 2015 238 (3Q Gross Domestic Product (GDPA series) at

Answer 1

Answer:

2019 equivalent price= Price at time t*(CPI of 2019/CPI of Time t)

A)

Years	Movie	Nominal Revenue (in millions)	CPI (2019=252)	2019 equivalent sales in millions
1939	Gone with winds	390	14	7020.00
1974	Godfather II	100	49	514.29
1997	titanic	2200	160	3465.00
2009	Avtar	2800	215	3281.86
2015	Star wars	2100	237	2232.91

B)

Year	Nominalgas price	CPI(2019=252)	2019 equivalent price
1930	0.25	17	3.71
1950	0.27	24	2.84
1970	0.35	39	2.26
1990	1.13	130	2.19
2000	1.66	173	2.42
2010	3.25	195	4.20
2015	2	238	2.12
2019	1.93	252	1.93

C)

Rate of Inflation for t year=(CPI for t year-CPI for t-1 year)/CPI for t-1 year

Nominal GDP growth rate for t year=(Nominal GDP for t year- Nominal GDP for t-1 year)/Nominal GDP for t-1 year

Real GDP for t year= Nominal GDP for t year- inflation rate for t year

Year	CPI	Inflation rate	Nominal GDP in T	Nominal GDP Growth	Real GDP growth
2010	217	NA	15.1	NA	NA
2011	225	3.69%	15.6	3.31%	-0.38%
2012	228	1.33%	16.2	3.85%	2.51%
2013	232	1.75%	16.7	3.09%	1.33%
2014	238	2.59%	17.5	4.79%	2.20%
2015	238	0.00%	18.1	3.43%	3.43%