Workers expect inflation to rise from 3 to 5 next year. As a ...

[Sportsfan2111]

Workers expect inflation to rise from 3 to 5 next year. As a result, this should
 
  A) move the economy down along a stationary short-run aggregate supply curve.
  B) move the economy up along a stationary short-run aggregate supply curve.
  C) shift the short-run aggregate supply curve to the left.
  D) shift the short-run aggregate supply curve to the right.

Question 2

If marginal cost is zero, with an optimal two-part tariff
 
  A) total revenue is maximized.
  B) the firm does not have to charge a fixed-fee portion.
  C) consumers maximize their surplus
  D) firms may not maximize profit.

[jharrington11]

Answer to Question 1

C

Answer to Question 2

A