Suppose the Price Index Was 110 in 2004,120 in 2005,and

question 77

Multiple Choice

Suppose the price index was 110 in 2004,120 in 2005,and 125 in 2006.Which of the following statements is correct?

• A)The economy experienced inflation between 2004 and 2005 and between 2005 and 2006.
• B)The inflation rate was positive between 2004 and 2005,and it was negative between 2005 and 2006.
• C)The inflation rate was higher between 2005 and 2006 than it was between 2004 and 2005.
• D)All of the above are correct.

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Definitions:

Henri Fayol

A French engineer and management theorist best known for developing a general theory of business administration and establishing the 14 principles of management.

Motivating

The act of providing motivation or encouragement to someone to trigger action or engagement.

Operational Approach

A method or strategy applied in the functioning and management of operations within an organization to improve efficiency and effectiveness.

Efficiency

The ratio of the output to the input of any system, highlighting the ability to use the least amount of resources to achieve the highest amount of output.