At the Beginning of a Year, Decision Makers Expect the General

question 38

Multiple Choice

At the beginning of a year, decision makers expect the general level of prices to increase at a 6 percent annual rate. The CPI increases from 150 to 154.5 during the year; this indicates that

• A) decision makers underestimated the rate of inflation during the year.
• B) decision makers overestimated the rate of inflation during the year.
• C) decision makers accurately forecast the rate of inflation during the year.
• D) the rate of inflation during the year was 4.5 percent.

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Definitions:

Choanoflagellate

Single-celled organisms that are considered to be the closest living relatives of animals, characterized by a flagellum surrounded by a collar of microvilli.

Rhizaria

A supergroup of mainly unicellular eukaryotes, characterized by their amoeboid movement mechanism and often elaborate shells.

Clades

Groups in a phylogenetic tree that include a single ancestor and all its descendants, representing monophyletic branches.

Motility

The ability of organisms and cells to move spontaneously and actively, consuming energy in the process.