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

question 48

Multiple Choice

At the beginning of a year, decision makers expect the general level of prices to increase at a 3 percent annual rate. The CPI increases from 150 to 154.5 during the year; this is an example of

• A) an inflation rate that is equal to 4.5 percent.
• B) an unanticipated increase in the general level of prices.
• C) an increase in the general level of prices that was accurately anticipated.
• D) an inflation rate that is less than what people anticipated.

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Definitions:

Reactive Power

The portion of electricity that oscillates between the source and load, essential for maintaining voltage levels in AC power systems but not converted into usable work.

Phase Angle Shift

See phase shift.

RC Parallel Circuit

A circuit configuration consisting of a resistor (R) and capacitor (C) connected alongside each other, sharing the same two nodes.

Resistance

The opposition that a substance offers to the flow of electric current, measured in ohms (Ω).