If the Inflation Rate Has Risen 2 Percent a Year

question 55

Multiple Choice

If the inflation rate has risen 2 percent a year for the past three years, then using this experience to forecast a 2 percent rise in the coming year's inflation rate is an example of

• A) traditional expectations.
• B) rational expectations.
• C) adaptive expectations.
• D) reflective expectations.
• E) deductive expectations.

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Definitions:

Random Sample

A method of selecting a subset of individuals from a population in which each individual has an equal probability of being chosen.

Capital Punishment

The legally authorized killing of someone as punishment for a crime, often debated in terms of its morality, effectiveness, and application.

Social Welfare Programs

Initiatives designed to provide assistance to the needy in society, aiming to enhance their quality of life and ensure their basic needs are met.

Military Interventions

The act of a nation sending its armed forces into another territory for the purpose of influencing the political or social order, often without the explicit permission of the latter.