The expected inflation rate is the
A) same as the actual inflation rate.
B) inter-annual, non-energy inflation rate.
C) inflation rate that people forecast and use to set the money wage and other money prices.
D) rate that people expect the Bureau of Labor Statistics to announce each month, on which bookies take bets.
E) inflation rate that the Federal Reserve system announces as the policy goal for the year.
C
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Assume a family that earns $20,000 pays $1,500 in income taxes, while a family that earns $40,000 pays $3,500 in income taxes. In this situation, the income tax system is
A) progressive. B) regressive. C) proportional. D) one of the above but we cannot tell which one without more information.
Which of the following is not a valid criticism of discretionary fiscal policy? a. The implementation of fiscal policy is sometimes difficult
b. Time lags in fiscal policy are long. c. Fiscal policy works only during periods of stagflation. d. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income. e. Fiscal policy might have undesirable long-term effects on aggregate supply.
Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the quantity of coffee demanded illustrated by the shift from point a to point b?
A. A decrease in the price of coffee B. A decrease in the price of sugar C. An increase in consumer incomes D. An increase in the price of tea
Offering goods that are similar to competitors' products but more attractive in some ways is called:
A. product distinction. B. price-point pinning. C. product differentiation. D. deceptive advertising.