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If Workers Expect Inflation, and Negotiate Wage Increases That Exactly

Question 210

Multiple Choice

If workers expect inflation, and negotiate wage increases that exactly match price increases, the result is a


A) horizontal aggregate supply curve at the level of potential GDP.
B) vertical aggregate supply curve at the level of potential GDP.
C) horizontal aggregate demand curve at the level of potential GDP.
D) vertical aggregate demand curve at the level of potential GDP.

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