If Inflation Was 6 Percent Last Year and a Worker

question 43

Multiple Choice

If inflation was 6 percent last year and a worker received a 4 percent nominal wage increase last year, then the worker's real wage:

• A)increased 4 percent.
• B)increased 2 percent.
• C)decreased 2 percent.
• D)decreased 6 percent.

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Definitions:

Government Mediation

The intervention by government agencies or officials to facilitate the resolution of a dispute between parties, typically in labor disputes.

Collective Bargaining

The negotiation process involving management and worker unions aiming to establish agreements on salary scales, conditions of employment, benefits, and other components of labor compensation and rights.

Labor-Management Relations

The interaction between employees or their representatives (often unions) and management in the workplace, focusing on the negotiation and application of work terms.

Rail

A mode of land transport involving trains traveling on tracks, typically used for carrying goods and passengers.