When inflation is very low,how do workers and firms adjust their expectations of inflation?
A) They rapidly adjust their expectations of inflation upward.
B) They rapidly adjust their expectations of inflation downward.
C) They tend to ignore inflation.
D) They are more aggressive in asking for wage and price increases.
Correct Answer:
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Q147: Figure 17-6 Q148: In which of the following situations might Q149: If workers and firms know that the Q150: The major criticism of real business cycle Q151: When individuals use all available information about Q153: Models that focus on factors such as Q154: If workers and firms have rational expectations,they Q155: According to real business cycle models Q156: If firms and workers have rational expectations,including Q157: Figure 17-6 
A)the long-run
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