Refer to the graph below. It shows short-run cost curves for a competitive firm. At what minimum price would the firm be willing to product some output in the short run?

A reduction in wage is most likely to:

A) increase worker productivity. B) increase quantity of labor supplied. C) decrease quantity demanded of labor. D) lower worker productivity.

The expectations-augmented Phillips curve implies that as expected inflation increases, nominal wages ________ to prevent real wages from ________

A) fall; rising B) fall; falling C) rise; falling D) rise; rising