On average, consumers' inflation expectation generally are about the same rate as core inflation and the two variables move together over time, although there are periods when they differ somewhat for a while. O True False QUESTION 12 Which of the following statements best describes the inflation error? The error is rising steadily over time O The error is typically positive during recessions and negative during expansions O The error tends to be positive when inflation is relatively high and negative when inflation is relatively low On average, the error is about zero (0%) every year QUESTION 13 The iration expectation error can change rapidly over a short period of time by a relatively large amount (2 percentage points of more). O True False
On average, consumers' inflation expectation generally are about the same rate as core inflation and the two variables move together over time, although there are periods when they differ somewhat for a while. O True False QUESTION 12 Which of the following statements best describes the inflation error? The error is rising steadily over time O The error is typically positive during recessions and negative during expansions O The error tends to be positive when inflation is relatively high and negative when inflation is relatively low On average, the error is about zero (0%) every year QUESTION 13 The iration expectation error can change rapidly over a short period of time by a relatively large amount (2 percentage points of more). O True False
Chapter1: Making Economics Decisions
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Transcribed Image Text:On average, consumers' inflation expectation generally are about the same rate as core inflation and the two variables
move together over time, although there are periods when they differ somewhat for a while.
O True
False
QUESTION 12
Which of the following statements best describes the inflation error?
The error is rising steadily over time
O The error is typically positive during recessions and negative during expansions
O
The error tends to be positive when inflation is relatively high and negative when inflation is relatively low
On average, the error is about zero (0%) every year
QUESTION 13
The iration expectation error can change rapidly over a short period of time by a relatively large amount (2 percentage
points of more).
O True
False
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