If Inflation Was 3 Percent Last Year and 2 Percent

question 86

Multiple Choice

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)0 percent.
• B)1 percent.
• C)3 percent.
• D)5 percent.

---

Definitions:

Appetitive Stimulus

A pleasant or desirable stimulus that an organism is drawn towards or seeks out, often used in the context of behavior reinforcement.

Cultural Background

The cultural settings and conditions a person is raised in, including traditions, language, beliefs, and values.

Academic Background

The educational history and qualifications a person holds, including degrees, certifications, and specialized training.

Perceptual Constancy

Perceptual Constancy is the perceptual stability of the size, shape, brightness, and color of objects, despite physical differences in the retinal image.