What Happens to Workers Who Contract for Cost of Living

question 133

Multiple Choice

What happens to workers who contract for cost of living allowances of 10 percent a year when the inflation rate falls to 4 percent?

• A) They lose purchasing power.
• B) They are paying an inflation tax.
• C) They become more costly to employ and may lose their jobs.
• D) Each of these answers is correct.

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Definitions:

Personal Property

Property that is movable, as opposed to real estate. It includes items like furniture, vehicles, and electronic devices.

Intermixing

The act of mixing or blending together different elements or substances.

Constitution

The fundamental principles or established precedents according to which a state or other organization is governed.

Property Ownership

The legal right or title that an individual or entity has over property, including the right to use, sell, lease or transfer it.