This new chair is well known for her view that inflation is not a major problem for an economy.
As a result of this news, people will expect the price level to___ , which, in turn, will cause the nominal wage that workers and firms agree to in their new labor contracts to be___than it would be otherwise. This___ the profitability of producing goods and services at any given price level, which would cause the short-run aggregate-supply curve to shift to the___ . If aggregate demand is held constant, this shift in the aggregate-supply curve will cause the price level to___ and the quantity of output produced to___ .
