Workers and Firms Both Expect That Prices Will Be 3

Multiple Choice

Workers and firms both expect that prices will be 3% higher next year than they are this year.As a result,

A) workers will be willing to take lower wages next year.
B) the purchasing power of wages will rise if wages increase by 3%.
C) the short-run aggregate supply curve will shift to the left as wages increase.
D) aggregate demand will increase by 3%.
E) the long-run aggregate supply curve will shift to the right by 3%.