A worker would be hurt least by inflation when the:
A. worker is protected by fixed annual increases in wages and benefits in an employment contract.
B. government increases the level of social security retirement benefits to correct for the effects of anticipated inflation.
C. worker anticipates inflation and increases savings at the bank.
D. worker is protected by a cost-of-living adjustment clause in an employment contract.
Answer: D
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The smaller the amount saved out of a change in disposable income, the
A) more horizontal the consumption function. B) larger the MPC. C) more net taxes affect consumption. D) smaller is autonomous consumption. E) smaller the MPC.
The quantity of labor an individual supplies to any market
a. always increases as the market wage rate rises b. is contingent upon the wage rates offered in other labor markets c. always decreases as the market wage rate rises d. could never be zero over the realistic range of wage rates e. depends only on the opportunity cost of the individual's time in other labor markets