ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A consistent drop in the cost of good and services in a decade
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Annual percentage rate based on the increase in the price of goods and services
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Deflating value of a countries’s monetary funds
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An ever increasing cost of living due to rising costs of goods and services
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Detailed explanation-1: -Definition: Inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on year basis. It effectively measures the change in the prices of a basket of goods and services in a year.
Detailed explanation-2: -The inflation rate is the percentage change in the price index for a given period compared to that recorded in a previous period. It is usually calculated on a year-on-year or annual basis.
Detailed explanation-3: -The annual rate of inflation is the price of the total basket in a given month compared with its price in the same month one year previously.
Detailed explanation-4: -When calculating inflation from a period of time, you are finding the percentage change from the starting date, which would be your base year. However, you can use any year as a base year to calculate the inflation rate.
Detailed explanation-5: -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.