Author Question: Based on the data in this table, U period 1 6 1 4 period 2 8 0 3.2 period 3 8 2 4.4 If ... (Read 59 times)

dakota nelson · **on:** Jun 30, 2018

Based on the data in this table,

U
period 1 6 1 4
period 2 8 0 3.2
period 3 8 2 4.4

If the natural rate of unemployment is steady at 7 percent, and, in period four, there is no price shock and unemployment is 8 percent, then the inflation rate in period 4 will be ________ percent.
A) 4.4
B) 3.6
C) 3.4
D) 1.6
E) none of the above

Question 2

For assessing whether or not and how much of an asset to hold, the important consideration is the asset's amount of

A) diversifiable risk.
B) nondiversifiable risk.
C) relative risk.
D) absolute risk.