Which of the Following Assumptions Best Characterised the Assumption About

question 15

Multiple Choice

Which of the following assumptions best characterised the assumption about how individuals formed expectations of inflation by the early 1970s?

• A) Expected inflation for the current year equal to the average inflation rate over the past five years.
• B) Expected inflation for the current year approximately equal to last year's inflation rate.
• C) Expected inflation for the current year equal to the average inflation rate over the past ten years.
• D) Expected inflation for the current year larger than last year's inflation rate.
• E) Expected inflation for the current year smaller than last year's inflation rate.

---

Definitions:

Self-Regulation

The regulation of the conduct of a professional group by members of the group. Self-regulation involves establishing ethical or professional standards of behavior with which members of the group must comply.

Professions

Occupations or career paths requiring specialized knowledge and often long and intensive academic training.

Nonregulation

The absence of formal rules, controls, or oversight by an authoritative body in a particular area of activity.

Higher Salaries

Compensation levels that are above average or higher than what is typically offered for similar positions or roles in a given industry.