Based on the Above Table, If the Current Price Level

question 56

Multiple Choice

$\begin{array} { c c } \hline \begin{array} { c } \text { Price level } \\( \mathbf { 2 0 0 5 } = \mathbf { 1 0 0 ) }\end{array} & \begin{array} { c } \text { Unemployment rate } \\\text { (percentage) }\end{array} \\\hline 102 & 7 \\103 & 6 \\105 & 5 \\108 & 4 \\112 & 3 \\\hline\end{array}$

Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent,
Then the

• A)inflation rate is 2.8 percent.
• B)inflation rate is 108 percent.
• C)expected inflation rate is 8 percent.
• D)inflation rate is 8 percent.
• E)expected inflation rate is 2.8 percent.

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Definitions:

Pay Period

The span of time over which an employee's work hours are recorded and paid.

Class Average

The mean score of a group of students in a particular class or subject.

Business Mathematics

The study of mathematical methods and tools used in business and finance to analyze and solve problems.

Four-figure Accuracy

Refers to precision up to four significant digits.