If Workers Expect Inflation, and Negotiate Wage Increases That Exactly

question 210

Multiple Choice

If workers expect inflation, and negotiate wage increases that exactly match price increases, the result is a

• A)horizontal aggregate supply curve at the level of potential GDP.
• B)vertical aggregate supply curve at the level of potential GDP.
• C)horizontal aggregate demand curve at the level of potential GDP.
• D)vertical aggregate demand curve at the level of potential GDP.