Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) move the economy down along a stationary short-run aggregate supply curve.
B) move the economy up along a stationary short-run aggregate supply curve.
C) shift the short-run aggregate supply curve to the left.
D) shift the short-run aggregate supply curve to the right.
C
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The long-run supply curve in a constant-cost industry is linear and
A) upward-sloping. B) downward-sloping. C) horizontal. D) vertical. E) could have any constant slope.
Which of the following is not an important question for economic policy raised by the experience of the textile industry?
a. How does international trade affect consumer well-being? b. Who gains and who loses from free trade among countries? c. How do the gains from trade compare to the losses? d. Which argument for restricting free trade is politically feasible?
The quantity theory of money originated under
A. classical economics. B. Keynesian economics. C. monetarism. D. supply-side economics.
If a country is currently producing at a production point such that the trade line has a slope that is flatter than the slope of the PPC at the same point, then
A) the country can get greater gains from trade if it moves production away from the good on the vertical axis. B) the country can get greater gains from trade if it moves production toward the good on the vertical axis. C) the country cannot improve on its gains from trade. D) There are no gains from trade in this example.