At the beginning of a year, decision makers expect the general level of prices to increase at a 6 percent annual rate. The CPI increases from 150 to 154.5 during the year; this indicates that
a. decision makers underestimated the rate of inflation during the year.
b. decision makers overestimated the rate of inflation during the year.
c. decision makers accurately forecast the rate of inflation during the year.
d. the rate of inflation during the year was 4.5 percent.
B
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In ________ market structure, a firm's output depends ________
A) an oligopoly; only on its own marginal revenue and marginal cost curves B) a monopolistically competitive; in part on its competitors' price and quantity decisions C) an oligopoly; in part on its competitors' price and quantity decisions D) a monopolistically competitive; only on its marginal revenue curve
If monetary policy can influence ________ prices and conditions in ________ markets, then it can affect spending through channels other than the traditional interest-rate channel
A) asset; labor B) asset; credit C) commodity; labor D) commodity; credit
Economic growth can:
A. create less jobs compare to a stagnated economy. B. increase poverty overall. C. improve standards of living. D. reduce the price level in the economy.
Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment
a. True b. False Indicate whether the statement is true or false