Question

What is the difference between the price index and the rate of inflation? What is deflation?...

What is the difference between the price index and the rate of inflation?

What is deflation? Disinflation?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer)

Using of CPI to measure inflation.

This formula will give the rate of inflation from last year to this year. Inflation is that rate at which prices rise assuming that nothing else about the good or service changes.

Deflation is when the general price levels in a country are falling Deflation can be caused by an increase in productivity, a decrease in overall demand, or a decrease in the volume of credit in the economy.

Disinflation is a decrease in the rate of inflation, a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

Deflation is a decrease in general price levels throughout an economy, while disinflation is what happens when price inflation slows down temporarily.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain the natural unemployment rate and its relationship to inflation rate. What is the difference between...
Explain the natural unemployment rate and its relationship to inflation rate. What is the difference between deflation and disinflation?
Explain the natural unemployment rate and its relationship to inflation rate. What is the difference between...
Explain the natural unemployment rate and its relationship to inflation rate. What is the difference between deflation and disinflation? please anwer briefly.
Short answer and typed please. Explain the natural unemployment rate and its relationship to inflation rate....
Short answer and typed please. Explain the natural unemployment rate and its relationship to inflation rate. What is the difference between deflation and disinflation?
(Inflation)Here are some recent data on the U.S. consumer price index:             Year     CPI            &
(Inflation)Here are some recent data on the U.S. consumer price index:             Year     CPI                  Year     CPI                  Year     CPI                  Year     CPI             1988     118.3                1993     144.5                1998     163.0                2003     184.0             1989     124.0                1994     148.2                1999     166.6             1990     130.7                1995     152.4                2000     172.2             1991     136.2                1996     156.9                2001     176.9             1992     140.3                1997     160.5                2002     179.9 Compute the inflation rate for each year 1989-2003 and determine which years were years of inflation.  In which years did deflation occur?  In which years did disinflation occur?  Was there hyperinflation in any year?
This table indicates the historical level of the Consumer Price Index (CPI) for the United States...
This table indicates the historical level of the Consumer Price Index (CPI) for the United States for 2006, 2007, and 2008. Complete the table by (1) selecting the inflation rates for 2007 and 2008, and (2) indicating for each year whether there has been inflation, deflation, or hyperinflation. Year CPI Inflation Rate Change in Price Level 2006 201.6 — — 2007 207.3       2008 215.3       What rates of inflation for 2009 would be consistent with disinflation between...
Question 1 Deflation refers to the phenomenon of a negative inflation rate. (In 2004, the inflation...
Question 1 Deflation refers to the phenomenon of a negative inflation rate. (In 2004, the inflation rate was negative in Hong Kong and we say Hong Kong suffered deflation in 2004.) Many people regard deflation as bad. Can you explain why? Is deflation sometimes good (at least for some people)?
An increase in the general price level is termed a) the Consumer Price Index b) inflation...
An increase in the general price level is termed a) the Consumer Price Index b) inflation c) deflation d) stagflation The CPI for 2012 was 177.1 and the CPI for 2013 was 179.9. The annual rate of inflation between these years was ________. A) 2.8 percent B) 79 percent C) 3.6 percent D) 1.6 percent The aggregate supply curve is defined as the A) sum of wages, rent, interest, and profits B) real GDP purchased at different possible price levels...
What is the difference between Tender Price Index and Location Index? If I have a project...
What is the difference between Tender Price Index and Location Index? If I have a project in Sembawang (location index = 100), today’s tender price index is 130. Do I use Tender Price Index or Location Index to calculate the building and M&E cost?
Explain the difference between Price-Weighted Index and Value-Weighted Index.
Explain the difference between Price-Weighted Index and Value-Weighted Index.
1. When demand pull inflation occurs, then we will observe which of the folllowing: a. The...
1. When demand pull inflation occurs, then we will observe which of the folllowing: a. The company will experience a situation known as stagflation b. there will be an increase in the in the unemployment rate and inflation rate c. there will be deflation accompanied by an increase in national output d. there will be a decrease in the unemployment rate in national output e. there will be a decrease in the unemployment rate and an increase in the inflation...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT