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

Operations function - information system, The Operations Function has alway...

The Operations Function has always relied heavily on information for its smooth running. During this course information has been introduced as one of the five inputs to the convers

Liner proggraming , A paper mill products two grade of paper viz., X & Y. B...

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

Assignment, discuss Dr. Konigs assignment method

discuss Dr. Konigs assignment method

Linear programing, A paper mill produces two grades of paper viz., X and Y....

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Basis of scientific methods, The scientific methods is based on certain...

The scientific methods is based on certain article of path these are: 1. Reliance on Evidence: Truth is established on the basis of evidence. Conclusion is admitted onl

Simplex method, Solve the following Linear Programming Problem using Simple...

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Research and development - information generation process, Research and Dev...

Research and Development: All intellectual activities consciously pursued and systematically completed generate useful information. Research (also Research and Development) is

Linear Programing, A paper mill produces two grades of paper viz., X and Y....

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Linear Equation, Cohen Chemicals, produces two types of photo-developing fl...

Cohen Chemicals, produces two types of photo-developing fluids. The first, a black and white picture chemical, costs Cohen $2500 per ton to produce. The second, a colour photo chem

Meaning and definition, Meaning and Definition If a group  of N observ...

Meaning and Definition If a group  of N observations is  arranged in ascending or descending  order of magnitude then the  middle  value is  called  median of  these  observat

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