3rd attempt Part 1 (6 points) Feedback The table below reports the actual inflation rate from 2016 to 2020. Complete the table, assuming people form expectations adaptively. Give all answers to two decimals. Year 2016 Actual Inflation rate 3% Expected Inflation rate Error 3% 0% 2017 5.00% a) O % 2018 6.00% 5.00% c) % 2019 5.00% d) 1,00% 2020 4,00% % NO 1 Part 2 (1 point) Feedback Look back at the table. Assuming people form expectations adaptively, which of the following statements are correct? Choose one or more: A. When inflation is decreasing from year to year, people tend to underestimate inflation. B. When inflation is decreasing from year to year, people tend to overestimate inflation. 8 The table below reports the actual inflation rate from 2016 to 2020. Complete the table, assuming people form expectations adaptively. Give all answers to two decimals. Year Actual inflation rate Expected inflation rate Error 2016 3% 3% 0% 2017 5.00% a) % b) 2 % 2018 6.00% 5.00% c) % 2019 5.00% d) 4 % 1.00% 2020 4.00% 5.00 % f) 1:00 %