Suppose the Price Level This Year Is 150 and the Price

question 280

Multiple Choice

Suppose the price level this year is 150 and the price level last year was 125. The inflation rate between last year and this year was

• A) 20 percent.
• B) 2 percent.
• C) 16.6 percent.
• D) 1.6 percent.

---

Definitions:

Stimulus Discrimination

The ability of an individual to differentiate between similar stimuli and respond to them differently.

Selective Retention

The psychological process by which individuals remember information that is consistent with their beliefs and attitudes while forgetting or ignoring contradictory information.

Routine Problem Solving

The use of simple, habitual decision-making strategies in buying situations that are familiar and not considered to be of high importance.

Behavioral Learning

Behavioral learning theory suggests that learning is the result of conditioning, where behavior is shaped through reinforcement or punishment, leading to a change in behavior patterns.