When Inflation Is Very Low,how Do Workers and Firms Adjust

question 66

Multiple Choice

When inflation is very low,how do workers and firms adjust their expectations of inflation?

• A)They rapidly adjust their expectations of inflation upward.
• B)They rapidly adjust their expectations of inflation downward.
• C)They tend to ignore inflation.
• D)They are more aggressive in asking for wage and price increases.

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Definitions:

Stock Prices

The cost of purchasing a share of a company, which fluctuates based on supply and demand, company performance, and market conditions.

Insiders

Individuals within a corporation who have access to confidential information about the company, often subject to trading restrictions.

Support Level

A price level below which it is supposedly difficult for a stock or stock index to fall.

Market Fall

A significant decline in the stock market, which can be triggered by various economic, political, or global events.