Following a Decline in the Inflation Rate, Once Long-Term Wage

question 5

Multiple Choice

Following a decline in the inflation rate, once long-term wage contracts are renegotiated and all prices in the economy adjust to their new equilibrium:

• A)the economy will move up the short-run Phillips curve.
• B)the short-run Phillips curve will shift to the left.
• C)the economy will return to the vertical Phillips curve.
• D)the aggregate supply curve will shift to the right.
• E)the aggregate demand curve will shift to the right.

---

Definitions:

Distribution

The process of making goods or services available to consumers through various channels.

Downstream Activity

Processes in the supply chain that occur after the production phase, such as distribution, marketing, and sales to the end consumer.

SCM

Supply Chain Management, the handling of the entire production flow of a good or service — from the raw components all the way to delivering the final product to the consumer.

Customer Demand

The desire of purchasers, consumers, clients, or end-users to buy goods or services in a given timeframe at a specific price.