If workers expect inflation, and tend to overestimate actual inflation when they negotiate wage increases, the result will be a continuing
A)shift of AD to the left.
B)shift of AD to the right.
C)recessionary gap.
D)inflationary gap.

Question

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The Answer of If workers expect inflation, and tend to overestimate actual inflation when they negotiate wage increases, the result will be a continuing
A)shift of AD to the left.
B)shift of AD to the right.
C)recessionary gap.
D)inflationary gap.

If Workers Expect Inflation, and Tend to Overestimate Actual Inflation