If the Price Index Is P₁ in One Year and P₂

question 85

Multiple Choice

If the price index is P₁ in one year and P₂ in the next year, the inflation rate from one year to the next is calculated as

• A)(P₂ - P₁)x 100
• B)[(P₁ - P₂)/P₂] x 100
• C)[(P₂ - P₁)/P₁] x 100
• D)(P_2/P₁)x 100
• E)(P_1/P₂)x 100

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Definitions:

Peristalsis

Rhythmic waves of muscular contraction and relaxation in the walls of hollow tubular organs, such as the ureter or parts of the digestive tract, that serve to move the contents through the tube.

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, through which food is digested and nutrients absorbed.

Chief Cells

Cells located in the stomach that secrete pepsinogen, an enzyme precursor that plays a key role in digestion.

Pepsinogen

The precursor of pepsin; secreted by chief cells in the gastric glands of the stomach.