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There are several answers for similar questions but the formulas provided in those answers are confusing. Can you assist with formulas for this table? Thank
There are several answers for similar questions but the formulas provided in those answers are confusing. Can you assist with formulas for this table? Thank you.
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) % |
2018 | 7.50% | 5.00% | c) % |
2019 | 6.50% | d) % | 1.00% |
2020 | 5.50% | e) % | f) % |
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