Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Measure Inflation : There are two common methods of measuring inflation: (i) percentage change in price index numbers(PIN), and (ii) change in GNP deflator. The two methods of measuring inflation are discussed below.Measuring inflation by PINThe following formula is used for measuring the rate of inflation through the change in the PIN.Rate of inflation = PINt = PINt-1 / PINt-1 x 100Where PIN, in the price index number in the year selected for measuring inflation in the PINt-1 is the price index number in the preceding year.The two widely used PIN s are wholesale price index (WPI), also called producer price index (PPI), and consumer price index (CPI). WPI is used measure the general rate of inflation and CPI is used to measure the change in the cost of living. In order to illustrate the measurement of inflation, let us use price index number in India in the early1990s. The WPI (1999 – 2000 = 100) for all commodities increased from 134.6 in 2005 -06 to 141.9 in 2006-07. The rate of inflation between 2005-06 and 2006-07 can be obtained by using the above formula as follows.Rate of inflation = 141.9 – 134.6 / 134.6 x 10 x 5.4 percentMeasuring inflation by GNP deflatorThe GNP deflator is the ratio of nominal GNP to the real GNP of the same year, I.e.GNP deflator = nominal GNP / real GNPWhere nominal GNP is GNP at current prices and real GNP is GNP at constant prices.The GNP deflator for any year can be obtained by using this formula. Suppose we want to calculate India’s GNP deflator for the year 2005-06. India’s nominal GNP (GNP at current prices) in 2005 – 06 was $32, 76,000 billion and her real GNP (GNP at constant prices of 1999-2000) was $ 26, 13,000 billion. Now India’s GNP deflator for 2005-06 can be obtained as follows,GNP deflator (2005-06) = 32, 76,000 / 26, 13,000 = 1, 2537In terms of percentage, GNP deflator equals 1.2537 x 100 = 125.37 percent. It means that India’s nominal GNP in 2005-06 was 125.37 percent of her real GNP, or the nominal GNP was 12.54 percent higher than her real GNP in 2005-06.The percentage change in GNP deflator between any two years gives a measure of inflation. For example the rate of inflation between 1990-91 and 1991-92 can be obtained as follows.Rate of inflation = 258.892 – 225.569 / 225.569 x 100 = 14.77%
Part 1 - Select a construction-based business of your choice and explain stakeholder theory to illustrate the primary interests of the stakeholder groups and identify any areas o
explain budget line?
Ask quesThe market demand for brand X has been estimated as Qx = 1,500 - 3Px - 0.05I - 2.5Py + 7.5Pz where Px is the price of brand X, I is per-capita income, Py is the price of
Facilitating Restructurings- rationale in era of globalisation: There has been some progress in the last few years in efforts to improve the framework for sovereign restructur
Inflation Types Inflation is generally classified on the basis of its rate and causes, while rate-based classification of inflation refers to the severity of inflation or how h
Using tools of indifference curve, highlight on consumption in business economics.
If the Bank of England wanted to discourage investment spending and reduce aggregate demand, it could?
income=100 price of x=5 price of x2=10 find consumer equilibrium with diagram
In equilibrium, what are the letters and the total dollar amounts that correspond to the area for the... i. Original Consumer Surplus? ii. Original Producer Surplus? iii.
The outer shape of a football can be described via the following equation Using Matlab, plot the outer shape of a football in red or orange using a line widt
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd