Adjusting inflation

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Q1. From 1947 to 1997 the CPI in US raised to 637% therefore inflation rose 637%. Use this fact to adjust each of the following 1947 prices for the effects of inflation. Explain which items cost less in 1997 than in 1947 after adjusting for inflation? Which items cost more?

Q2. Recognize an incentive conflict in your firm, or one you have read about, that reduced firm value. As part of your answer converse whether or not one or more of the legs of the organizational stool was unbalanced, and if so, explain how that contributed to the conflict.

Reference no: EM137223


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