Suppose the Actual Rate of Inflation in the Economy Is

question 54

Multiple Choice

Suppose the actual rate of inflation in the economy is 5%.If we know that expected inflation is 2%,and that output-gap inflation is 1%,then we also know that

• A)the NAIRU is 5%.
• B)money wages must be rising by 5%.
• C)non-wage supply-shock inflation must equal 2%.
• D)expected inflation is rising by 2%.
• E)the actual rate of inflation is falling.

---

Definitions:

Standardized

Involves creating something, such as tests or procedures, that is consistent and uniform across different situations and users to ensure comparability and reliability.

Same Instructions

The provision of identical guidelines or directives to different individuals in an experimental or educational setting.

Same Questions

Inquiries that are identical or very similar in nature, often repeated or asked multiple times.

Achievement Test

A test designed to assess a person's level of skill, knowledge, or accomplishment in a particular area.