Using the Notation P_t to Designate This Periodʹs Price Level

question 318

Multiple Choice

Using the notation P_t to designate this periodʹs price level and P_t-1 to designate last periodʹs price level, the formula for measuring the inflation rate from last period to this period is

• A) [P_t-1 - P_t) / P_t] × 100.
• B) [P_t - P_t-1) / P_t] × 100.
• C) [P_t - P_t-1) / P_t-1] × 100.
• D) [P_t-1 - P_t) / P_t-1] × 100.

---

Definitions:

Past History

Past history is a record or account of events, actions, or conditions that happened in the past.

Overt Behavior

Observable actions or responses of an individual, which can be directly seen and measured by others.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Freudian Psychoanalysis

A psychological theory and therapy method developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as determinants of human behavior.