If Wages and Prices in Long-Term Contracts Were Fully Indexed

question 77

Multiple Choice

If wages and prices in long-term contracts were fully indexed,

• A)prices would be more sticky in the short run.
• B)prices would be more sticky in the long run.
• C)prices would be less sticky in the short run.
• D)the stickiness of prices would not be affected.

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Definitions:

National Labor Relations Act

U.S. legislation enacted in 1935 to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices, which can harm the general welfare of workers, businesses, and the U.S. economy.

Enforces

The act of compelling obedience to laws, rules, or obligations.

Taft-Hartley Act

A 1947 U.S. federal law that restricts the activities and power of labor unions, also known as the Labor Management Relations Act.

Landrum-Griffin Act

Federal law that primarily governs the internal operations of labor unions. It requires financial disclosures by unions, establishes penalties for financial abuses by union officials, and includes “Labor’s Bill of Rights” to protect employees from their own unions.