If Workers Begin to Expect More Inflation in the Future

question 219

Multiple Choice

If workers begin to expect more inflation in the future, then we would expect that the:

• A)short-run aggregate supply curve will shift up (to the left).
• B)short-run aggregate supply curve will shift down (to the right).
• C)short-run aggregate supply curve will not shift.
• D)aggregate demand curve will shift left.

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Definitions:

Lockout

An action taken by employers to prevent employees from entering the workplace, typically during a labor dispute to pressurize the labor side.

Secondary Boycott

A form of protest where the union encourages both its members and the general public not to buy products or services from a company that is involved in a dispute.

Permanent Strike Replacements

Refers to workers hired to fill the positions of striking employees on a long-term or lasting basis, which can affect the bargaining power of the striking workers.

PATCO Strike

The Professional Air Traffic Controllers Organization strike of 1981, notable for President Reagan's decision to fire striking air traffic controllers, highlighting the tensions in public sector labor relations.