Inflation, Operation Research

Assignment Help:

 Inflation

Inflation is a general increase in the price of goods and services. The inflation rate, as measured by the Consumer Price Index (CPI), was 9.9% in 20x2-x3 and is expected to be 8% in 20x3-x4. This does not mean that prices will be lower in 1993-94. It merely means that the general increase in prices will be lower. An example will clarify the point.

The prices of certain items are included in calculating the CPI. If a given quantity of these items cost Rs.10,000 in the beginning of 20x2-x3, then at the end of 20x2-x3 they would cost Rs.10,990 which is 9.9% more. Further at the end of 20x3-x4 they will be expected to cost Rs.11,869 which is 8% more than the cost at the beginning of the year. Clearly the prices have not fallen, only the rate of increase has slowed down.

Figure 1: Inflation as Reflected by the Cost of Items Worth Rs.10,000
on 1st April 1992

1831_inflation.png

         1st April 20x2  1st April 20x3 1st April 20x4


Related Discussions:- Inflation

Operation Research, A paper mill produces two grades of paper viz., X & Y. ...

A paper mill produces two grades of paper viz., X & Y. Because of raw material restrictions, it cannot produce more 400 tons of grade X paper & 300 tons of grade Y paper in a week.

Use of the graphs, Use  of the Graphs a . It simplifies  the complexi...

Use  of the Graphs a . It simplifies  the complexities of large numbers  or that of  large mass  of data. In general  graphical  or some  other method or representation  is ad

Development of lp problems, A company manufactures 2 kinds of hats. Each ha...

A company manufactures 2 kinds of hats. Each hat of the I type needs twice as much as labour time as the II type. The company can manufacture a sum of 500 hats a day. The market re

Phase of operation research, The scientific method in O R study generall...

The scientific method in O R study generally involves the followings three phases: 1. Judgment phase, 2. Research phase 3. Action phase

Game theory, if there were n workers and n jobs there would be

if there were n workers and n jobs there would be

Linear programming , #quesQuestion. a paper mill produces two grades of pa...

#quesQuestion. a paper mill produces two grades of paper viz.,xand y.Bacause of raw material restrictions, it cannot produce more than 400 tones of grade x paper and 300 tons of g

Please semd ans., A paper mill products two grade of paper viz., X & Y. Bec...

A paper mill products two grade of paper viz., X & Y. Because of raw material restriction, it cannot produce more than 400 tons of grade X paper & 300 tons of grade Y paper in a we

Scientific research, Scientific research is building of knowledge throug...

Scientific research is building of knowledge through collection of empirically verifiable facts. The term verifiable here means which can be checked by others for accuracy

Scope and concept, Explian scope and concept of Operations research?

Explian scope and concept of Operations research?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd