(a) Change in nominal spending
1062-65: (1,959 / 1,306) - 1 = 1.5 - 1 = 0.5 = 50%
2004-07: (90,701 / 85,798) - 1 = 1.0571 - 1 = 0.0571 = 5.71%
Increase in nominal spending was higher between 1962-65.
(b)
Real spending = (Nominal spending / CPI) x 100
1962: ($1,306 / 30.2) x 100 = $4,325
1965: ($1,959 / 31.5) x 100 = $6,219
2004: ($85,798 / 188.9) x 100 = $45,420
2007: ($90,701 / 207.3) x 100 = $43,753
Increase in real spending, 1962-65: (6,219 / 4,325) - 1 = 1.4379 - 1 = 0.4379 = 43.79%
Increase in real spending, 2004-07: (43,753 / 45,420) - 1 = 0.9633 - 1 = - 0.0367 = - 3.67%
Increase in real spending was higher between 1962-75.
3. The following table lists the nominal federal spending on nondefense-related education and training (in million...
2. The following table lists the nominal federal spending on nondefense-related education and training (in billion dollars) and CPI (price index) in 1962, 1965, 2001, and 2004. 2. The following table lists the nominal federal spending on nondefense-related education and training (in billion dollars) and CPI (price index) in 1962, 1965, 2001, and 2004. 1962 1965 2001 2004 Nominal Spending $9.6 $19.5 $178.4 $217.5 30 31.2 175.1 185.2 CPI (a) Compare the change in nominal spending from 1962 to 1965...
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