If inflation was 3 percent last year and 2 percent this year, an individual who follows extrapolative expectations would predict that the inflation rate for the coming year would be:
A. 1 percent.
B. 0 percent.
C. 3 percent.
D. 5 percent.
Answer: A
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A human resource such as ingenuity can be thought of as
A) part of government spending programs. B) part of a country's endowment. C) a causal factor for aggregate supply shifting left. D) a positive for imports.
Interest rates in the economy have fallen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall. B) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall. C) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise. D) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
Which of the following is not included in Nation A's financial account?
a. Foreign deposits of funds in savings accounts in Nation A. b. Purchases and sales of legal and accounting creations. c. Foreign purchases of Nation A's Treasury bills. d. All the above.
Cross-price elasticity of demand is defined as the:
A. percentage change in demand divided by percentage change in the price of another good. B. change in the price of another good divided by the change in quantity demanded. C. percentage change in quantity demanded divided by percentage change in the price of the same good. D. percentage change in the price of another good divided by the percentage change in quantity demanded.