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If Workers Expect the Rate of Inflation to Rise from 4

Question 100

Multiple Choice

If workers expect the rate of inflation to rise from 4% to 6% next year, 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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