If workers begin to expect more inflation in the future, then we would expect that the:
A. short-run aggregate supply curve will shift up (to the left).
B. aggregate demand curve will shift left.
C. short-run aggregate supply curve will shift down (to the right).
D. short-run aggregate supply curve will not shift.
Answer: A
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A government surplus is
A) when it spends more than its income. B) when it owes more than what it is owed. C) when its income is higher than its spending. D) when it is owed more than what it owes.
It is difficult for cyclically unemployed individuals to find jobs because:
a. they do not meet the qualifications required for the available jobs. b. the economy is in a recession. c. they quit their last job and employers view them with suspicion. d. they have not looked long enough to find a job.
What do rational expectations theorists believe? What is their critics' point of view?
Suppose that Rockport Shoes planned to produce and sell $200 million of shoes in 2003, but by year's end was able to sell only $180 million. The remaining unsold $20 million would be recorded as
a. personal consumption expenditures b. a business loss c. an addition to business inventory d. an increase in disposable income e. a part of the underground economy