ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -If the CPI rises from 120 to 126, then: A. on average, the price paid by urban consumers for a fixed basket of consumer goods and services rises by 5 percent.
Detailed explanation-2: -The correct answer Running. A sudden acceleration in the rate of rising prices is referred to as Running Inflation. When prices rise by more than 10% per annum, running inflation occurs.
Detailed explanation-3: -The precise inflation rate as the price index moves from 107 to 110 is calculated as (110 – 107) / 107 = 0.028 = 2.8%.
Detailed explanation-4: -Use the inflation rate formula Subtract the past date CPI from the current date CPI and divide your answer by the past date CPI. Multiply the results by 100. Your answer is the inflation rate as a percentage.