Assume Contracts Between Workers and Employers That Call for an Increase

question 170

Multiple Choice

Assume contracts between workers and employers that call for an increase in the wage rate of 5 percent are based on an expected inflation rate of 3 percent. Should inflation actually be 6 percent,
Then

• A) nominal wages fall by 5 percent.
• B) real wages fall by 6 percent.
• C) nominal wages fall by 1 percent.
• D) real wages fall by 1 percent.

---

Definitions:

Fiber Optic

A technology that uses glass (or plastic) threads (fibers) to transmit data. Fiber optic cables are known for their ability to transmit large amounts of data at high speeds over long distances compared to traditional metal conductors.

Electrical Noise

Unwanted variations in an electrical signal that can degrade the performance of electronic circuits.

Voltage Spike

A sudden, brief increase in voltage significantly above the normal level, potentially harmful to electrical equipment.

DC Resistive Load

A load that resists current in a direct current (DC) circuit, typically through the dissipation of energy in the form of heat.