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:

Field Devices

Equipment such as sensors, actuators, and transmitters located in the operational environment, directly interacting with the process or physical phenomena being controlled.

Processor

The central part of a computer or other digital systems that interprets and executes instructions.

Hand-Held Programming

The use of portable devices to program or configure machinery and equipment directly on the plant floor.

Continuously Variable Signal

A signal that can assume an infinite number of values within a given range, as opposed to discrete signals.