Workers and Firms Both Expect That Prices Will Be 4

question 111

Multiple Choice

Workers and firms both expect that prices will be 4 per cent 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 4 per cent.
• C) the short-run aggregate supply curve will shift to the left as wages increase.
• D) aggregate demand will increase by 4 per cent.

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Definitions:

Sporting Goods Store

A retail business that specializes in selling equipment, clothes, and other items related to sports and outdoor activities.

Purpose

The reason for which something is done or created or for which something exists, often providing motivation or direction.

Goals

Targets or objectives that a person or organization aims to achieve.

Abilities

The competency or skill sets that an individual possesses, enabling them to perform various tasks or activities.