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:

Commitment

The state or quality of being dedicated to a cause, activity, or person, often implying a long-term engagement or obligation.

Sternberg's

Refers to Robert Sternberg's triangular theory of love, which posits that love is comprised of three components: intimacy, passion, and commitment.

Triangular Theory

A theory proposed by psychologist Robert Sternberg that suggests love is composed of three components: intimacy, passion, and commitment.

Commitment

A psychological state or an enduring dedication to a course of action, cause, relationship, or goal.