Q
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
A. None of these answers
-
B
B. Workers will gain at the expense of firms
-
C
C. Neither workers nor firms will gain because the increase in wages in fixed in the labor agreement
-
D
D. Firms will gain at the expense of workers.
Correct Answer:
D. D. Firms will gain at the expense of workers.
