Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result,
A) aggregate demand will increase by 2.5%.
B) the purchasing power of wages will rise if wages increase by 2.5%.
C) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease.
D) the short-run aggregate supply curve will shift to the left as wages increase.
D
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The velocity of circulation is equal to
A) the price level multiplied by the quantity of money. B) nominal GDP divided by the quantity of money. C) the quantity of money divided by the price level and then multiplied by real GDP. D) the quantity of money divided by nominal GDP. E) the price level divided by real GDP.
DeWitt Clinton is most recognized for
a. inventing the wheat combine. b. being one of the primary advocates of the abolition movement. c. developing the technology to power railroad engines. d. overseeing the building of the Erie Canal.