ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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9.4%
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9.8%
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10.0%
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11.1%
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12.2%
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Detailed explanation-1: -Remember, the inflation rate is not derived by subtracting the index numbers, but rather through the percentage-change calculation. 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-2: -Key Takeaways Price levels are leading indicators in the economy; rising prices indicate higher demand leading to inflation while declining prices indicate lower demand or deflation.
Detailed explanation-3: -Tally all expenses from your bank and credit card statements in the past 12 months, as well as for the prior 12-month period. Subtract the totals and divide by the first year’s spending. Multiply that number from step 2 by 100 to determine your personal annual inflation rate. 07-Jul-2022
Detailed explanation-4: -Find the average price in both years: $1.60 in 1992 and $2.62 in 2012. Enter the data into the equation. Subtract the 1992 price from the 2012 price ($1.02) Divide the difference by the original price. ($1.02 ÷ $1.60 = 0.6375) Multiply the previous answer by 100 to get a percentage.