Answered: The price of oil is rising at 10% per…

The price of oil is rising at 10% per year while inflation is just 2.5% per year. If the current price of oil is $45 per barrel, what would be the price of oil ten years from now in real dollars?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 33P: The index number representing the price level changes from 110 to 115 in one year and then from 115...

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The price of oil is rising at 10% per year while inflation is just 2.5% per year.
If the current price of oil is $45 per barrel, what would be the price of oil ten years from now
in real dollars?

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