Workers and firms both expect that prices will be 3% higher next year than they are this year. As a result
A) aggregate demand will increase by 3%.
B) workers will be willing to take lower wages next year.
C) the purchasing power of wages will rise if wages increase by 3%.
D) the short-run aggregate supply curve will shift to the left as wages increase.
D
Economics
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A rise in the price level ________ the buying power of money and ________ the quantity of real GDP demanded
A) does not affect; does not change B) raises; decreases C) does not affect; increases D) lowers; decreases E) lowers; increases
Economics
Paper money in the U.S. is: a. fiat money
b. more than half of M2. c. only partially backed by gold and silver in Fort Knox. d. convertible into specie (gold or silver) at the holder's request.
Economics