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

Reference books - classification of documents, Reference Books: Defini...

Reference Books: Definition According to William  Katz (1969) a Reference book generally has the following qualities:  It is a miscellany of information organised for quick

Paired sample sign test - hypothesis testing , Paired sample  sign Test ...

Paired sample  sign Test Paired samples  sign test is applied  to a situation where two sample  are taken from  two population which  have continuous symmetrical distributi

Demerits of range - measure of dispersion , Demerits  of Range a.It g...

Demerits  of Range a.It gives  importance  to the  two  extreme  values and is very much affected by the extreme items. b.The range  provides  no information  about the  st

Knowledge - library and information services, Knowledge: The dictionar...

Knowledge: The dictionary definition of knowledge is 'organised body of information or the comprehension and understanding, consequent on having acquired an organised body of

Lpp using sipmle method, Maximize Z= 3x1 + 2X2 Subject to the constraints: ...

Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Techniques of work measurement, Techniques  of Work  Measurement A n...

Techniques  of Work  Measurement A number of work  measurement  techniques  have been  developed  to suit  different  types of work . There are: 1. Repetitive work: The

Chi square test for independence of attribute , Chi Square Test for Indepe...

Chi Square Test for Independence  of Attribute The chi square  test  can be  used to find out  whether two  or more attributes are associated or not. This  test helps  in fin

Panel sampling - sampling decisions, Panel Sampling Here the initial  s...

Panel Sampling Here the initial  samples are down  on random  basis  and information  from  these is collected  on regular  basis. Itis  semi permanent sample where members may

Need answer, A paper mill produces two grades of paper viz., X and Y. Becau...

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

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