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Once we have monthly data on a price index we can evaluate the inflation. In most nations, the percentage change in price index during one month is small. Hence it is more common to calculate inflation each month based on a complete year. For instance, on 1 January 2010, inflation is calculated as percentage change in the price index between 1 January 2010 and 1 January 2010. On 1 February 2010, inflation is evaluated as the percentage change in price index between 1 February 2010 and 1 February 2010 and so on. Figure belowillustrates Germany as an instance.
Figure
Inflation in Germany 1992 - 2010. Source: OECD.
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?
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Note that it's changes in prices during 2008 that matter for the high real interest rate (time period when your deposit is earning interest). This means that you can never know how
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If population growth carry on then there will not be sufficient resources around for everyone this will lead to an event such as famine / war, which will decrease the population.
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