Which of the Following About Inflation Is True

question 83

Multiple Choice

Which of the following about inflation is true?

• A) High and variable rates of inflation will be easy for decision makers to forecast accurately.
• B) Unanticipated inflation is an increase in the general level of prices that was not expected by most decision makers.
• C) In contrast with unanticipated inflation, anticipated inflation implies that the increase in the general level of prices was expected by borrowers but not lenders.
• D) Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.

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Definitions:

Stratified Random Sample

A sampling method where the population is divided into subgroups (strata) that share similar characteristics, and random samples are then taken from each subgroup to ensure representation across the population's diversity.

Systematic Random Sample

A sampling method where elements are selected from an ordered sampling frame using a starting point and a fixed periodic interval.

Subset

A set containing some or all elements of another set, without any additional elements.

Frame

In survey research, a frame is a list or representation of all the elements in the population from which a sample is drawn.