Using the Notation P_t to Designate This Period's Price Level

question 303

Multiple Choice

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

• A) [(P_t - P_{t - 1}) / P_t] × 100.
• B) [(P_{t -1} - P_t) / P_{t - 1}] × 100.
• C) [(P_t - P_{t - 1}) / P_{t - 1}] × 100.
• D) [(P_{t -1} - P_t) / P_t] × 100.

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Definitions:

Eyespots

Simple visual organs found in some unicellular organisms, allowing them to sense light direction and intensity.

Sea Stars

Marine echinoderms belonging to the class Asteroidea, known for their star-shaped body and capability of regeneration.

Predators

Creatures that pursue, capture, and eat other beings for nourishment.

Cephalopods

A group of mollusks encompassing octopuses, squids, cuttlefish, and nautiluses, known for their bilateral symmetry of the body, distinct head, and multiple arms or tentacles.