Workers Expect Inflation to Fall from 4% to 1% Next

question 216

Multiple Choice

Workers expect inflation to fall from 4% to 1% next year.As a result, this should

• A)shift the short-run aggregate supply curve to the left.
• B)shift the short-run aggregate supply curve to the right.
• 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.
• E)make the short-run aggregate supply curve steeper.

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