If the consumer price index for the United States rises from 350 at the end of a year to 365 at the end of the next year, how much inflation was there in the United States during that year?
What will be an ideal response?
Price indexes are ratios of the price level in a given year to the price level in a base year. Because the base year is the same in the two price indexes under consideration, we can take the ratio of the two price indexes and find the rate of inflation over that year. The ratio is 365/350 = 1.0429 or an inflation rate of 4.29%.
You might also like to view...
Which of the following activities most likely would detect whether payroll data are accurately processed?
A. Monitor authorized distribution of data control sheets. B. Use computer-assisted audit techniques and test data to verify the accurate performance of payroll processing. C. Segregate duties between approval of hardware and software specifications. D. Examine source documents for approval by supervisors.
Toyota, a Japanese company, owns manufacturing plants in Kentucky, Indiana, West Virginia, and several other states as well as in more than a dozen other countries outside of Japan. This is an example of ______.
a. direct investment b. contracting c. franchising d. importing/exporting
The prescriptive nature of the adaptive leadership approach is found in the ______.
A. types of challenges B. actions of the followers C. response of the organization D. leader behaviors
Before Carlos opened his new bakery, he baked a variety of sample cupcakes and cookies to sell at local farmers markets and other local events. Which stage of the scientific process of experimentation does this represent? a. asking lots of questions
a. asking lots of questions b. carrying out background research c. developing hypotheses d. testing the hypotheses by running experiments