Question

From 1962 to 1964, federal spending on nondefense-related education and training rose from $1.31 billion to $1.61 billion, while from 2012 to 2014, it rose from $96.9 billion to $99.5 billion. Given that the cpi in January was 30.0 in 1962, 30.9 in 1964, 226.7 in 2012, and 233.9 in 2014, which was the larger increase in education and training spending?

Answer 1

Federal spending on nondefense-related education and training

In 1962 = 1.31 b

In 1964 as per CPI of 1962= Spending in 1964*CPI of 1962/CPI of 1964

= 1.61*30/30.9

=1.563107 b

Increase in this period = (1.563107-1.31)/1.31 = 0.193211

= 19.32%

In 2012 = 96.9 b

In 2014 as per CPI of 2012 =99.5*226.7/233.9 = 96.43715

Increase in this period = (96.43715-96.9)/96.9

= -0.00478

= -0.478%

The larger increase in education and training spending was between 1962 and 1964