The following table shows inflation rates for several decades into 2020 dollars.
| Time span | 1980-2020 | 1990-2020 | 2000-2020 | 2010-2020 |
| Inflation | 232% | 102% | 53% | 19% |
The following table shows the nominal (unadjusted) prices for gold over several years. Complete the table showing gold prices in constant 2020 dollars. (Round to the nearest cent.) Show your work below the table.
[(5 x 0.2)(table) + (4 x 1)(work) = 5 pt]
| Year | 1980 | 1990 | 2000 | 2010 | 2020 |
| Nominal (unadjusted) price per ounce | $516.92 | $381.73 | $273.68 | $1179.25 | $1636.35 |
| Constant (adjusted) price per ounce in 2020 dollars |
| 1a. 1980
$516.92 |
|
| 1b. 1990
$381.73 |
|
| 1c. 2000
$273.68 |
|
| 1d. 2010
$1179.25 |
|
| 1e. 2020
$1636.35 |
It is not necessary to adjust the 2020 price, but you must still fill in the table above in constant 2020 dollars! |
The bar charts below display the unadjusted gold prices per ounce (left) from the previous page and the adjusted prices (in 2020) that you calculated.
| 2. Unadjusted Prices (0.25+0.25+2=2.5 pts) | 3. Adjusted Prices (0.25+0.25+2=2.5 pts) |
| 2a. In what year were unadjusted prices the lowest? |
3a. In what year were adjusted prices the lowest? |
| 2b. In what year were unadjusted prices the highest? |
3b. In what year were adjusted prices the highest? |
| 2c. Describe the trend(s) in unadjusted prices over time. Use words like increase, decrease, and/or constant and mention specific years. |
3c. Describe the trend(s) in adjusted prices over time. Use words like increase, decrease, and/or constant and mention specific years. |
Partial Answer Key: No specific values are provided, but here’s a hint: Check your inflation-adjusted prices from 1a-1d against the price-adjusted bar graph at the top-right of page 2 to see if they match. You won’t be able to tell exact values, but you can tell if your answers are close to what they should be.
