Question

the textbook shows that the inflation-adjusted movie receipts for star wars (released 1977) were $1,410,707,000 and the original receipts were $460,998,000. the implication is that: a. prices in the current year are about the same as they were in 1977. b. hyperinflation has occurred since 1977. c. prices today are about 33% of what they were in 1977. d. prices today are about three times what they were in 1977. e. star wars was a bad movie at the time of its release but has become more popular over time.

Answer 1

Answer D is correct; the inflation-adjusted receipts for Star Wars imply that prices today are roughly three times what they were in 1977 due to inflation.

Step-by-step explanation:

The inflation-adjusted movie receipts for Star Wars, released in 1977, were $1,410,707,000 compared to the original receipts of $460,998,000. Given this information, the correct answer is that option D: prices today are about three times what they were in 1977. This conclusion is drawn by understanding that inflation refers to the general increase in prices and loss of purchasing power over time. Just as dinner conversations might remind us of how little things used to cost, inflation results in a decrease in the purchasing power of currency due to an increase in prices across the economy. For example, in 2012, $1 had approximately the same purchasing power as 18 cents did in 1970.