Employers near military bases are aware that wives generally accompany their servicemen husbands when they are transferred. When presented with nonservice-wife applicants and wives of servicemen, they hire the nonservice-wife applicants. This is an example of

Fill in the blanks: ________ is defined as a sustained ________ in the purchasing power of money

A) Inflation; fall B) Deflation; fall C) Inflation; rise D) Answers B and C above are both true.

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

A) move the economy down along a stationary short-run aggregate supply curve. B) move the economy up along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the left. D) shift the short-run aggregate supply curve to the right.