Workers and Firms Both Expect That Prices Will Be 2

question 185

Multiple Choice

Workers and firms both expect that prices will be 2.5% higher next year than they are this year.As a result

• A)workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease.
• B)the purchasing power of wages will rise if wages increase by 2.5%.
• C)the short-run aggregate supply curve will shift to the left as wages increase.
• D)aggregate demand will increase by 2.5%.
• E)long-run aggregate supply will shift to the right by 2.5%.

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Definitions:

Narcissism

A personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.

Self-Love

Self-love is the regard for one’s own well-being and happiness, often considered as a crucial part of mental health and emotional resilience.

Fearful Avoidant Attachment

A type of attachment characterized by a desire for close relationships but a fear of getting too close or being too dependent on others.

Anxiety

Experiencing stress, fretfulness, or restlessness, usually in anticipation of a nearing event or due to an unpredictable result.