The economywide rate of inflation is given by:
A) $\pi _ { t } = \pi _ { t } ^ { e }$
B) $\pi _ { t } = \bar { u } _ { t } ^ { e } + \overline { \boldsymbol { v } } \tilde { Y } _ { t }$
C) $\pi _ { t } = \bar { \pi } _ { t } ^ { e } + \overline { \boldsymbol { v } } \tilde { Y } _ { t }$
D) $\pi _ { t } + \overline { \boldsymbol { v } } \tilde { Y } _ { t }$
E) $\pi _ { t } = \bar { \pi } _ { t } ^ { e } - \overline { \boldsymbol { v } } \tilde { Y } _ { t }$

Question

Quizplus · Accepted Answer

The economywide rate of inflation is often modeled as the expected inflation rate plus a term that accounts for the output gap, which is represented by $\overline { \boldsymbol { v } } \tilde { Y } _ { t }$.

The Economywide Rate of Inflation Is Given By: A) πt=πte\pi _ { t } = \pi _ { t } ^ { e }πt​=πte​

The Economywide Rate of Inflation Is Given By:
A) $\pi _ { t } = \pi _ { t } ^ { e }$