When Inflation Is Very Low,how Do Workers and Firms Adjust

question 66

Multiple Choice

When inflation is very low,how do workers and firms adjust their expectations of inflation?

• A)They rapidly adjust their expectations of inflation upward.
• B)They rapidly adjust their expectations of inflation downward.
• C)They tend to ignore inflation.
• D)They are more aggressive in asking for wage and price increases.

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Definitions:

Psychological States

Variations in an individual's mental condition that can influence their feelings and behaviors at any given time.

Meaningfulness

The significance or value that an individual perceives in their work, contributing to a sense of purpose or fulfillment.

Responsibility

The obligation to complete tasks, make decisions, and be accountable for outcomes.

Hackman And Oldham

Refers to the Job Characteristics Model proposed by J. Richard Hackman and Greg Oldham, which outlines how job design contributes to employee motivation, satisfaction, and performance.