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

U.S. Healthcare Timeline, 500 word summary written in third person on predi...

500 word summary written in third person on predictions of how current healthcare reform polocies will impact the future of healthcare

Mean deviation - measure of dispersion, MEAN DEVIATION Mean  deviati...

MEAN DEVIATION Mean  deviation of a series is the arithmetic  average of the  deviations of various  items  from the  median  or mean  of that series. Median is preferred

Data collection procedure, A series of questionnaire for Delphi were mailed...

A series of questionnaire for Delphi were mailed to the selected experts who meet the criteria that mention in above. The overall purpose of the Delphi technique was to achieve the

Rehearse - report writing presentation , Rehearse Making  presentat...

Rehearse Making  presentation is not  simple. It  is extremely  important  for us  to realize the sanctity of rehearsing  to improve the quality of the presentation. Unless

Assignment, Q2.Six Operators are to be assigned to five jobs with the cost ...

Q2.Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given in the matrix below. Determine the optimal assignment. Which operator will have no assignm

Linear programming , #questionQuestion. a paper mill produces two grades o...

#questionQuestion. 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

Lpp., Paper Mill Produces Two Grades Of Paper Viz x And y Because Of Raw Ma...

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 In a We

Cgj, application&techniques

application&techniques

Analytical and decision- making skills, This assessment aims to provide stu...

This assessment aims to provide students with the opportunity to hone their analytical and decision- making skills. It also aims to help students develop their ability to think cre

Introduction to probability distribution , Introduction to Probability Dist...

Introduction to Probability Distribution By  theoretical distribution we mean  a frequency distribution  which  is obtained  in relation to a random  variable by some  mathem

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