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.
A recent revision of the previous year's CPI data showed that it was overstated by one percentage point.

C.
The Purchasing Manager's Index, published by a supply-chain management firm in Paragon has been stable for the past couple of months.

D.
The government recently increased its growth projections for the year by 100 basis points.

E.
Most of Paragon's trade partners have reported low levels of inflation.

A. The producer Prince Index has been steadily increasing over the past few months.

Explanation:

this is an outline for the decisions that frankie is going to make

opportunity cost

willingness to buy

price or quality

of course, there could be many economic strategies that should be considered important while making decision. opportunity cost is the foremost significant factor while considering any economic option. when you buy something, you should know how much you are forgoing for this product. indeed, you could buy something different with this measure if you changed your mind. willingness to buy shows how much surplus you are earning while making a decision. it is important because it shows you buy what you want or you buy because you have only limited amount of money. the price or quality can be considered as a general economic option that we are applying while buying something. when you buy something, price or quality could be one of the options. indeed, they define the characteristics of the product.    

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