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%
The raspberry growing industry is a perfectly competitive industry. The firms in the industry have a U-shaped LAC, minimum average cost is $8 and the minimum efficient scale is 4 u
Real Interest Rate: Interest rate on a loan, adjusted for rate of inflation. Real interest rate represents real burden of an interest payment. Real interest rates should be positiv
Area of Dominant Influence (ADI) The ADI is a geographic area made up of all over the world that receive signals from radio and television stations in a individual market.
what is the value in 10 years of 1 million dollars if interes rates are 4%?
what is ratios GNP? what is use of models in macroeconomics?
if the Japanese yen appreciates against the U.S. dollar, do the Japanese businesses gain by a decrease in the dollar price of exports to the United States
use a graphical illustration to describe briefly what the influence of each of the following be on the market supply of labour,(a) an increase in immigrants, (b) a reduction in wag
1 Differentiate between a firm and a market. 2 Graphically illustrate (i.e. draw) and explain the relationship between the market demand curve and the individual firm's demand c
Choosing Inputs How to minimize cost for the given level of output. We can do so by combining Isocosts with Isoquants Producing a
Monopoly: Monopoly is a market structure in which there is a single firm producing a commodity or providing a service that has no close substitutes. As the sole supplier to it
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