Which of the Following About Inflation Is True

Multiple Choice

Which of the following about inflation is true?

A) Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals.
B) Unanticipated inflation is a change in the price level that is widely expected.
C) Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy.
D) Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.