In the Text Inflation Is Given by the Equation ________ $P _ { t }$

Multiple Choice

In the text inflation is given by the equation ________, where $P _ { t }$ is the current price level and $P _ { t + 1 }$
is the future price level.

A) $\pi _ { t } = P _ { t + 1 } - P _ { t }$
B) $\pi _ { t } = P _ { t + 1 } / P _ { t }$
C) $\pi _ { t } = \left( P _ { t } - P _ { t + 1 } \right) / P _ { t }$
D) $\pi _ { t } = \left( P _ { t + 1 } - P _ { t } \right) / P _ { t }$
E) $\pi _ { t } = \left( P _ { t + 1 } / P _ { t } \right) + 1$