If Workers and Employers Expecting Three Per Cent Inflation Agree

question 21

Multiple Choice

If workers and employers expecting three per cent inflation agree to a three-year wage contract, and inflation turns out to be five per cent, then:

• A)workers gain and employers gain
• B)workers gain and employers lose
• C)workers lose and employers gain
• D)workers lose and employers lose

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Definitions:

IDEO Projects

Innovative projects developed by IDEO, a global design company, focusing on creating positive impact through design and innovation.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal one, due to constraints such as limited information or time.

Rationality

The quality of being based on or in accordance with reason or logic; decision-making that aims to optimize outcomes.

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The capacity to generate innovative ideas, solutions, or artistic expressions.