Guy ferrell, a student who lives in the country paragon, observes that analysts are cutting their growth forecasts for the economy for the coming year. most of them based their analysis on the fact that the level of inflation in the economy would adversely affect economic growth. however, guy looks up the weekly inflation data for the past couple of months and finds that inflation has been stable and low.
which of the following, if true, would explain the analysts' predictions?
a. the producer price index has been steadily increasing over the past few months.
b. most of paragon's trade partners have reported low levels of inflation.
c. a recent revision of the previous year's cpi data showed that it was overstated by one percentage point.
d. the government recently increased its growth projections for the year by 100 basis points.
e. the purchasing manager's index, published by a supply-chain management firm in paragon has been stable for the past couple of months.
Answers: 1
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Guy ferrell, a student who lives in the country paragon, observes that analysts are cutting their gr...
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