Table 24-8
the Table Below Lists Annual Consumer Price Index

question 125

Short Answer

Table 24-8
The table below lists annual consumer price index and inflation rates for a country over the period 2010-2013. Assume the year 2010 is used as the base year.
$$\begin{array} { | l | l | l | } \hline \text { Year } & \begin{array} { l } \text { Consumer } \\\text { Price Index }\end{array} & \text { Inflation Rate } \\\hline 2010 & 100 & \\\hline 2011 & 120 & \mathrm {~B} \\\hline 2012 & \mathrm {~A} & 15 \% \\\hline 2013 & 134 & \mathrm { C } \\\hline\end{array}$$
-Refer to Table 24-8. Calculate the missing value that belongs in space B.

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Definitions:

Government Budget Deficit

A situation where a government spends more money than it receives in revenue over a particular period, often leading to the accumulation of debt.

Real Exchange Rate

The rate at which the goods and services of one country can be exchanged for the goods and services of another, adjusted for inflation.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of a country's international trade on its economic output.

Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues, leading to a shortfall that must be financed through borrowing.