Workers expect inflation to fall from 4% to 1% next year. As a result, this should
A) shift the short-run aggregate supply curve to the left.
B) shift the short-run aggregate supply curve to the right.
C) move the economy up along a stationary short-run aggregate supply curve.
D) move the economy down along a stationary short-run aggregate supply curve.
Answer: B
You might also like to view...
What gives a demand deposit value?
A) The belief others will readily accept the demand deposit in exchange for valuable goods B) The currency the bank holds as reserves C) The guarantees the government provides D) The gold backing the deposits E) In God we trust.
Which of the following statements is true of wages, educational attainment, and gender?
a. Male workers are compensated for attending college, while female workers generally are not. b. Female workers are compensated for attending college, while male workers generally are not. c. Both genders receive a higher wage for attending college. d. Neither gender receives a higher wage for attending college.
The clearing corporation's main role in the futures market is to:
A. provide the underlying assets so the contracts can be created. B. set the market price of the contract. C. act as the counterparty to both sides of the transaction, thereby guaranteeing payment. D. all of the above.
If China has domestic assets of $50 billion, domestic liabilities of $100 billion, and $50 billion in foreign assets, a 10% appreciation of the Chinese yuan will:
A) cause the Chinese domestic assets to increase in value. B) cause the Chinese domestic liabilities to decrease in value. C) cause the overall wealth to decrease by 5%. D) cause the overall wealth to increase by 5%.