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In the Specification of Adaptive Expectation Used in the Dynamic π\pi

Question 30

Multiple Choice

In the specification of adaptive expectation used in the dynamic model of aggregate demand and aggregate supply, people at time t - 1 forecast the inflation rate in time period t will be:


A) π\pi t - 2
B) π\pi t - 1
C) π\pi t
D) π\pi t + 1

Correct Answer:

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