Workers Expect the Rate of Inflation to Fall from 5

question 104

Multiple Choice

Workers expect the rate of inflation to fall from 5% to 2% next year. As a result, this should:

• A)shift the short-run aggregate supply curve to the right.
• B)shift the short-run aggregate supply curve to the left.
• C)move the economy up along a stationary short-run aggregate supply curve.
• D)move the economy down along a stationary short-run aggregate supply curve.

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