When an Employer Is Forced to Increase Wages at the Same

question 74

Multiple Choice

When an employer is forced to increase wages at the same rate of inflation,the

• A) worker is receiving a cost-of-living adjustment.
• B) economy is experiencing stagflation.
• C) economy is experiencing hyperinflation.
• D) economy is experiencing disinflation.
• E) effects of expansionary monetary policy are amplified.

---

Definitions:

Mood Swings

Rapid and often unexpected changes in emotional state, ranging from feelings of happiness to feelings of sadness or irritability.

Outbursts

are sudden, forceful expressions of emotion or activity, often as a result of pent-up feelings.

Self Management

The process of controlling one's own behavior, emotions, and thoughts in the pursuit of long-term goals.

Legitimate Power

The capacity to influence others by virtue of formal authority, or the rights of office.