Question

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.

Answer 1

Answer:

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

Explanation: