If the Aggregate Price Level at Time T Is Denoted

question 19

Multiple Choice

If the aggregate price level at time t is denoted by Pt, the inflation rate from time t - 1 to t is defined as

• A) = (P_t - P_{t - 1})/ P_{t - 1}.
• B) = (P_{t + 1} - P_{t - 1}) /P_{t - 1}.
• C) = (P_{t + 1} - P_t) /P_t.
• D) = (P_t - P_{t - 1}) /P_t.

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Definitions:

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