If Workers and Firms Adjust Their Expectations of Future Prices

question 94

True/False

If workers and firms adjust their expectations of future prices in a higher price level, the short-run aggregate supply curve shifts to the right.

---

Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where each participant has negligible influence on the price, leading to efficient outcomes where price equals marginal cost.

Output

The total amount of goods and services produced by an economic system over a specific period.

Price

The sum of money needed to buy a product, service, or property.

Demand Curve

The demand curve is a graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and its price.