A worker has negotiated a nominal wage contract with his employer for a period of 3 years. Which of the following will happen if the rate of inflation rises beyond the worker's expectation during this period?
A) The worker's real wage will increase. B) The worker will be better off.
C) The company's shareholders will be worse off. D) The worker will be worse off.
D
You might also like to view...
A stronger U.S. dollar in world exchange markets means that
A) foreigners sell the dollars that they have. B) a dollar buys more units of foreign currency than it could before. C) a dollar buys less units of foreign currency than it could before. D) a dollar buys the same amount of foreign currency than it could before, with gold backing up the value of the dollar.
The maximum amount Jameson would be willing to pay for a cupcake, less the price he actually pays, is called
A) consumer surplus. B) producer surplus. C) cooperative surplus. D) deadweight loss.
The consensus reached in the late 1990s was that from the 1980s onward the Fed had been
A) quicker to stimulate or restrain the economy when its output fell short of or exceeded its natural level. B) quicker to stimulate the economy when output fell short of the natural level, but slower to do so when output exceeded the natural level. C) slower to stimulate the economy when output fell short of the natural level, but quicker to do so when output exceeded its natural level. D) slower to stimulate or restrain the economy when its output fell short of or exceeded its natural level.
Problems are most likely to arise when:
A. one person knows more than another. B. both parties lack the same information. C. people have good enough information to make acceptable choices. D. complete information is impossible to obtain.