If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected ?

Question

TuteeHUB · Accepted Answer

NA

TuteeHUB · Answer

none of these answers

TuteeHUB · Answer

Workers will gain at the expense of firms

TuteeHUB · Answer

neither workers nor firms will gain because the increase in wages in fixed in the labor agreement

TuteeHUB · Answer

firms will gain at the expense of workers.

1.	If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected ?
A.	none of these answers
B.	Workers will gain at the expense of firms
C.	neither workers nor firms will gain because the increase in wages in fixed in the labor agreement
D.	firms will gain at the expense of workers.
Answer» E.

Discussion