Why would a policymaker risk inflation if workers can just renegotiate their wages?
A) There is a change that workers will not fully anticipated the impact of the policy.
B) The policymakers want to look like they are actively involved in the economy.
C) Inflation is not a high price to pay in the economy.
D) The policymakers do not believe that the workers can renegotiate.
A
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Legislators often gain by bundling a number of projects benefiting local districts at the expense of general taxpayers together on a single bill. Such legislation is called
a. market failure legislation. b. the rational-ignorance effect. c. public-goods legislation. d. pork-barrel legislation.
Which of the following statements is false?
A) Capital consists of produced goods that can be used as inputs for further production.
B) The terms resources, inputs, and factors of production are synonyms.
C) Labor consists of the physical, but not mental, talents of people who contribute to the production process.
D) Entrepreneurship is one of the four categories of resources.
E) The resource category land includes natural resources, such as minerals, forests, water, and unimproved land.