The price of a serving of McDonald's French fries in 1950 was 10c
For simplicity, assume the price of a serving of McDonald's French fries today is $1.67, the CPI for 1950 is 23.5 and the CPI for today is 240.5.
In terms of today's dollars, the real price of McDonald's French fries in 1950 was S. (Enter your response rounded to two decimal places)
Real price in today's dollars = Nominal price in 1950 x (CPI today / CPI in 1950)
= $0.10 x (240.5 / 23.5)
= $1.02
The price of a serving of McDonald's French fries in 1950 was 10c For simplicity, assume...