PPSCFPSCNTSPakistan govt jobs
- Subject
- Inflation & Productivityeconomics-mcqs › inflation-productivity
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
The Consumer Price Index (CPI) was 124.0 in 1989 and increased to 130.7 in 1990. What was the inflation rate during this time frame?
Multiple choice question for Inflation & Productivity. Select an option, then review the explanation below.
Explanation
To find the inflation rate, subtract the earlier CPI from the later CPI, then divide by the earlier CPI and multiply by 100: ((130.7 - 124.0) / 124.0) × 100 = 5.4%. Therefore, the inflation rate over this period is 5.4%.
More Inflation & Productivity MCQs
Practice related questions from the same subject.
- 1.According to the Phillips curve theory, when does unemployment revert to its natural rate?
- 2.What do menu costs signify in the context of inflation?
- 3.What is the effect of a rise in production costs on the economy?
- 4.What is the likely effect on the economy when injections into it increase?
- 5.Which of the following can trigger demand-pull inflation?