If Workers and Firms Raise Their Inflation Expectations

question 103

Multiple Choice

If workers and firms raise their inflation expectations

• A)unemployment will fall.
• B)actual inflation will fall to match expected inflation.
• C)the short-run Phillips curve will be vertical.
• D)the short-run Phillips curve will shift upward.

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Definitions:

Net Sales

Total revenue from sales minus returns, allowances for damaged or missing goods, and any discounts allowed.

Cost of Goods Sold

Direct expenditures linked to the manufacture of a company's products for sale, covering both materials and labor.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating the company's financial health over a specified period.

Gross Margin Ratio

A financial metric that demonstrates the proportion of revenue that exceeds the cost of goods sold, expressed as a percentage.