Workers and Firms Both Expect That Prices Will Be 3

question 275

Multiple Choice

Workers and firms both expect that prices will be 3% higher next year than they are this year.As a result

• A)workers will be willing to take lower wages next year.
• B)the purchasing power of wages will rise if wages increase by 3%.
• C)the short-run aggregate supply curve will shift to the left as wages increase.
• D)aggregate demand will increase by 3%.

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Definitions:

Consistency

Consistency refers to the adherence to the same principles, course, form, etc., over a period of time, ensuring uniformity.

Appearance

The way in which a person or thing looks to others, encompassing visual attributes such as style, cleanliness, and presentation.

Audience's Attitudes

The collective feelings, beliefs, and opinions held by the group of people targeted by a message or presentation, which can significantly influence their reception of the communicated material.

Reader's Expectations

The assumptions or beliefs regarding what readers anticipate or look for in a piece of writing, based on its context, genre, or purpose.