While the actual inflation rate in the United States in 1998 was about 1.0 percent, demand-only models of the economy had predicted that inflation would be roughly
A) 1.0 percent.
B) 2.8 percent.
C) 3.8 percent
D) 5.8 percent.

Question

Quizplus · Accepted Answer

Demand-only models often overestimate inflation by not accounting for supply-side factors, leading to a prediction of 3.8 percent.

While the Actual Inflation Rate in the United States in 1998