Question

2. This year’s blockbuster movie “Avengers: Endgame" made $2.8 billion

in total receipts worldwide, making it the highest grossing movie of all time

in dollar terms. Here are the nominal receipts from some blockbuster

movies over the last 40 years:

Avengers: Endgame (2019): $2.8 billion

Avatar (2009): $2.7 billion

Titanic (1997): $2.2 billion

Jurassic Park (1993): $1.0 billion

ET (1982): $792 million

Star Wars (now known as Episode 4, 1977): $775 million

Choose a base year and convert all of these figures into real terms using

historical data on the level of the Consumer Price Index in different years

Which of these movies was the biggest hit in real inflation-adjusted terms?

(Hint: use the formula we used to convert nominal to real GD

Answer 1

Film	Year	Nominal Receipts	CPI	Real receipts Adjusted to base 1977
Avengers Endgame	2019	2.8	255.31	0.665
Avaatr	2009	2.7	214.5	0.763
Titanic	1997	2.2	160.5	0.831
Jurassic Park	1993	1	144.5	0.419
ET	1982	0.792	96.5	0.497
Star Wras	1977	0.775	60.6	0.775
We calculate the adjusted real receipts
using formula = Nominal recipts /(CPI in year /CPI in base Year = 1977)
Biggest hit in real inflation adjusted terms is Titanic = 831 million