If Workers and Firms Raise Their Inflation Expectations

question 103

Multiple Choice

If workers and firms raise their inflation expectations

• A)unemployment will fall.
• B)actual inflation will fall to match expected inflation.
• C)the short-run Phillips curve will be vertical.
• D)the short-run Phillips curve will shift upward.

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Definitions:

Employment Standards Act

This refers to legislation that sets out minimum employment standards within a jurisdiction, covering wages, hours, vacations, and other workplace entitlements.

Labour Relations Code

Legislation that regulates the relationship between employers and unions, including the right to collective bargaining and strikes.

Lawful Strike

A work stoppage by a group of workers that is conducted according to legal guidelines and not prohibited by law.

Interest Dispute

A disagreement about the terms to be included in a new collective agreement.