Regarding Inflation, Which of the Following Is a True Statement

question 171

Multiple Choice

Regarding inflation, which of the following is a true statement?

• A) Unanticipated inflation is a change in the general level of prices that catches most decision makers by surprise.
• B) High and variable rates of inflation are easy for decision makers to forecast accurately.
• C) High and variable rates of inflation can increase GDP by reducing investment.
• D) When decision-makers are able to anticipate slow, steady rates of inflation, prices become more unstable and there is a negative impact on the level of prosperity.

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Definitions:

HR Forecasting

A strategic approach used by HR departments to anticipate future business demands for the workforce, ensuring the right number of people with the right skills are available when needed.

Reactive

Pertaining to a response after the fact, rather than proactively anticipating changes or challenges.

Proactive

Taking initiative by acting in anticipation of future problems, needs, or changes.

HR Forecasting

The process used by human resources to estimate the future demand and supply of employees needed to achieve the company's objectives.