Question: ollar figures from different times do not represent a valid comparison of purchasing power. To compare a dollar figure from the past to a dollar

ollar figures from different times do not represent a valid comparison of purchasing power. To compare a dollar figure from the past to a dollar figure today, the older figure should be inflated using a price index such as CPI. Use the problem below to make this point.

Problem: Your father graduated from school and took his first job in 1982, which paid a salary of $15,000. What is this salary worth in 2015 dollars? - CPI in 1982 = 96.5 - CPI in 2015 = 251.

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