Which of the following is a source of income inequality?

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.

Which of the following did NOT contribute to the European experience of the past few decades where the stand of living rose more slowly than labor productivity?

A) longer vacations B) higher unemployment C) higher participation rates D) All of the above