Gross Domestic Product Essay Example | Topics and Well Written Essays - 500 words

Gross Domestic Product - Essay Example From this paper it is clear that a comparison of $40,000 earned in 1980 and 2010 can be made by first finding the number of times the consumer price index has decreased or increased from 1980 to 2010. In 1980 and 2010 the consumer price indexes were 82.4 and 236.74 respectively. The percent increase in the inflation rate from 1980 to 2010 was 187%. The average consumer price index went up 1.87 times between 1980 and 2010. The increases in CPIs show that the available products in 2010 were more expensive that they were in 1980. Concerning quality, some of the products have increased quality from 1980 to 2010 because of technological advancement. Good examples are electronics and cars that were more energy efficient in 2010 than they were in 1980.  As the study highlights  a person would be wealthier if he/she earned $ 40,000 in 1980 than making the same amount in 2010. The purchasing power in 1980 was greater than purchasing power in 2010. So, the person would buy more products or assets in 1980 than in 2010. One would choose to live 1980 because prices of products were less expensive than in 2010. If an individual were to determine which year he would have liked to live, the most appropriate and practical answer would be 1980. A person earning $40,000 in 1980 would live more comfortably that another individual who is receiving the same amount in 2010 because products were cheaper in 1980 than in 2010.