If Workers Expect the Rate of Inflation to Rise from 4

question 100

Multiple Choice

If workers expect the rate of inflation to rise from 4% to 6% next year, 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.