If Workers and Firms Expect That Inflation Will Be 3

question 124

Multiple Choice

If workers and firms expect that inflation will be 3 percent next year,and real wages are not changing over time,by how much will nominal wages increase?

• A)3 percent
• B)more than 3 percent
• C)less than 3 percent
• D)depends on actual inflation for next year

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Definitions:

Poll Tax

A tax levied as a fixed sum on every liable individual, historically used in the United States to disenfranchise African American citizens and poor whites.

Grandfather Clause

was a legal or constitutional mechanism used to prevent Black Americans from voting by exempting some people from new requirements if their ancestors had voting rights, effectively disenfranchising many African Americans.

Jim Crow Laws

A series of state and local statutes in the Southern United States, enforcing racial segregation and discrimination against African Americans from the late 19th century until the 1960s.

Private Spaces

Areas intended for individual use where access is restricted, emphasizing privacy and personal freedom.