Regarding Inflation, Which of the Following Is True

Multiple Choice

Regarding inflation, which of the following 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) When the inflation rate is high and variable, decision makers will generally be able to anticipate year-to-year changes in inflation quite accurately.
D) Inflation will tend to increase the nominal values of both prices and wages.