If Workers Expect Inflation, and Tend to Overestimate Actual Inflation

question 154

Multiple Choice

If workers expect inflation, and tend to overestimate actual inflation when they negotiate wage increases, the result will be a continuing

• A)shift of AD to the left.
• B)shift of AD to the right.
• C)recessionary gap.
• D)inflationary gap.

---

Definitions:

RuBP

Ribulose biphosphate, a molecule that acts as the acceptor of carbon dioxide in the first step of the Calvin cycle during photosynthesis.

Carbons

Chemical elements with the symbol C and atomic number 6, essential to all known life, and the basis of organic chemistry.

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, and couples this electron transfer with the transfer of protons (H+ ions) across a membrane.

Calvin Cycle

A set of biochemical reactions that take place in the stroma of chloroplasts in photosynthetic organisms, resulting in the conversion of carbon dioxide and other compounds into glucose.