Workers Expect the Rate of Inflation to Fall from 5

question 85

Multiple Choice

Workers expect the rate of inflation to fall from 5 per cent to 2 per cent next year.As a result,this should

• A) shift the short-run aggregate supply curve to the right.
• B) shift the short-run aggregate supply curve to the left.
• C) move the economy up along a stationary short-run aggregate supply curve.
• D) move the economy. own along a stationary short-run aggregate supply curve.

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