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Workers Expect Inflation to Rise from 3% to 5% Next

Question 135

Multiple Choice

Workers expect inflation to rise from 3% to 5% next year.As a result, this should


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

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