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

Solve by computational procedure of big – m method, Example 2 Max Z = 3...

Example 2 Max Z = 3x 1 - x 2 Subject to             2x 1 + x 2 ≥ 2             x 1 + 3x 2 ≤ 3             x 2 ≤ 4     &     x 1 ≥ 0, x 2  ≥ 0   A

TRANSPOTATION, LIMITS OF TRANSPOTATION PROBLEM

LIMITS OF TRANSPOTATION PROBLEM

Government documents - classification of documents, Government Documents: ...

Government Documents: Government  publications are the official documents brought out at government expense. They are the records of activities of the (1) Executive, (2) Legis

Yates correction for continuity for 2x 2tables , Yates Correction for Cont...

Yates Correction for Continuity for  2x 2Tables If any cell frequency in  2x 2 table isles  than 5thenfor the application of X 2 test it  is pooled with the preceding or suc

Some guidelines for bibliography entries , Some Guidelines  for Bibliograp...

Some Guidelines  for Bibliography Entries 1. Reference of a Back  by One Authors : Mention authors  name book title ( in italics hence  to be  underlined) city  publication

Carry out resource levelling for equipment resource, Teesside Construction ...

Teesside Construction is developing a schedule for a major building project to start in 04/01/2011 in Middlesbrough, UK. The project manager has identified major activities of the

Degree of correlation ship - correlation regression analysi, Degree of  Co...

Degree of  Correlation ship 1. Perfect Correlation: When  changes  in  two related variables are  exactly  proportional  there is  perfect correlation between  them. In case

Linear programming, 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

LPP, A paper mill produces two grades of paper viz. X and Y. Because of raw...

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 in

Model, disadvantages of model in operational research

disadvantages of model in operational 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