Factors influencing inflationary expectations include
A) forward-looking forecasts built into wage negotiations.
B) inflationary momentum owing to staggered contract settlements.
C) inflationary momentum owing to backward-looking wage behavior.
D) all of the above.
E) none of the above.

Question

Quizplus · Accepted Answer

All the options listed (A, B, and C) are factors that can influence inflationary expectations. Forward-looking forecasts can shape expectations during wage negotiations, inflationary momentum can arise from staggered contract settlements, and backward-looking wage behavior can also contribute to inflationary momentum.

Factors Influencing Inflationary Expectations Include