Y1* Y2^ Nom GDP 1650* 2100^ Real GDP 1500* 1800^ INFLATION RATE BETWEEN Y1 AND Y2
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1 Answer

US flate rate...guvt hav reesunabel numbers starting in 1800

B4 that...tri googel tu get sumwon's ges

US guvt data giv numbr=51 for yeer=1800

this is based on yeer1967=100

yeer 2012=718.699

718.699/51=14.09213...1 dollar in 1800 inflated tu 14 $ now

=212 yeers

so (1+x)^212=14.09213

take logs...212*log(1+x)=log(14.09213)=1.148976641

log(1+x)=1.148976641/21 =0.005419701136

1+x=10^0.005419701136

=1.0125575

so averaej flate rate from 1800 thru 2012=1.256%/yeer

resent...average from 2000 thru 2012=2.8%/yeer
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