A rise in the expected price level leads to an expectation that real wages will ____________,which will cause people to work __________,shifting the SRAS curve _______________.

Question

Quizplus · Accepted Answer

A rise in the expected price level leads to an expectation that real wages will fall, causing people to work less, which shifts the Short-Run Aggregate Supply (SRAS) curve leftward.

A Rise in the Expected Price Level Leads to an Expectation