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Workers Expect the Rate of Inflation to Fall from 5

Question 104

Multiple Choice

Workers expect the rate of inflation to fall from 5% to 2% next year. As a result, this should:


A) shift the short-run aggregate supply curve to the right.
B) shift the short-run aggregate supply curve to the left.
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.

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