If the aggregate price level at time t is denoted by Pt,the inflation rate from time t - 1 to t is defined as
A) πt = (Pt - Pt ₋ ₁) /Pt ₋ ₁.
B) πt = (Pt ₊ ₁ - Pt ₋ ₁) /Pt ₋ ₁.
C) πt = (Pt ₊ ₁ - Pt ) /Pt.
D) πt = (Pt - Pt ₋ ₁) /Pt.
Correct Answer:
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