$$\begin{array} { c c }
\begin{array} { c }
\text { Price level } \
( 2005 = 100 )
\end{array} & \begin{array} { c }
\text { Unemployment rate } \
\text { (percentage) }
\end{array} \
\hline 102 & 7 \
103 & 6 \
105 & 5 \
108 & 4 \
112 & 3 \
\hline
\end{array}$$
-Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the
A) inflation rate is 8 percent.
B) expected inflation rate is 8 percent.
C) inflation rate is 2.8 percent.
D) expected inflation rate is 2.8 percent.
E) inflation rate is 108 percent.

Question

$$\begin{array} { c c } 
\begin{array} { c } 
\text { Price level } \
( 2005 = 100 )
\end{array} & \begin{array} { c } 
\text { Unemployment rate } \
\text { (percentage) }
\end{array} \
\hline 102 & 7 \
103 & 6 \
105 & 5 \
108 & 4 \
112 & 3 \
\hline
\end{array}$$
-Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the
A) inflation rate is 8 percent.
B) expected inflation rate is 8 percent.
C) inflation rate is 2.8 percent.
D) expected inflation rate is 2.8 percent.
E) inflation rate is 108 percent.

Quizplus · Accepted Answer

The Answer of $$\begin{array} { c c } 
\begin{array} { c } 
\text { Price level } \
( 2005 = 100 )
\end{array} & \begin{array} { c } 
\text { Unemployment rate } \
\text { (percentage) }
\end{array} \
\hline 102 & 7 \
103 & 6 \
105 & 5 \
108 & 4 \
112 & 3 \
\hline
\end{array}$$
-Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the
A) inflation rate is 8 percent.
B) expected inflation rate is 8 percent.
C) inflation rate is 2.8 percent.
D) expected inflation rate is 2.8 percent.
E) inflation rate is 108 percent.

-Based on the Above Table, If the Current Price Level