As People Get Used to Inflation

question 26

Multiple Choice

As people get used to inflation:

• A) the short-run aggregate demand curve adjusts more rapidly.
• B) wages adjust faster, and the short-run aggregate supply shifts quickly to the right.
• C) wages adjust faster, and the short-run aggregate supply shifts quickly to the left.
• D) the long-run aggregate demand adjusts more slowly.

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Definitions:

AFL

The American Federation of Labor, a national federation of labor unions in the United States founded in 1886, focused on skilled workers.

Craft Unions

Labor unions that organize workers in specific trades or crafts to negotiate wages, working conditions, and other employment terms.

Public Employees Unions

Labor organizations representing workers employed by governmental bodies, focusing on negotiating wages, working conditions, and benefits.

Labor Union Membership

The enrollment and participation of workers in a labor union to collectively bargain for better wages, working conditions, and benefits.