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...
Suppose there is a $200 billion increase in government spending. We know that this increase in government spending will cause which of the following to occur?
A) equilibrium real GDP will increase by exactly $200 billion. B) an increase in equilibrium real GDP and an increase in the multiplier. C) an increase in equilibrium real GDP and a reduction in the multiplier. D) an increase in equilibrium real GDP and no change in the multiplier.
The average number of times per year each dollar is used to transact an exchange is known as the:
a. liquidity of money. b. velocity of money. c. quantity theory of money. d. equation of exchange e. rapidity index