KNOWLEDGE CHECK Here is the vicious deflationary cycle. What step connects the upper right blue arrow to the lower left gray arrow? Company revenues decline Workers expect prices to increase Prices decline Workers demand pay increases Click to open/close image. sem er nose image. KNOWLEDGE CHECK Here is the vicious deflationary cycle. What step connects the upper right blue arrow to the lower left gray arrow? Company revenues decline Workers expect prices to increase Prices decline Workers demand pay increases Click to open/close image. sem er nose image