Collective Bargaining Agreements That Prohibit Wage Cuts for the Duration

question 23

Multiple Choice

Collective bargaining agreements that prohibit wage cuts for the duration of the contract contribute to

• A) a wealth effect.
• B) a multiplier effect.
• C) an increase in aggregate supply.
• D) a price level that is inflexible downward.

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Definitions:

Economic Duress

Coercion involving threats to a person’s business or financial condition that compel the person to act against their will in entering a contract.

Voluntary Choice

The concept of making decisions freely, without coercion, often discussed in contexts of contract law and ethics.

Legitimate Alternatives

Viable and lawful options or solutions that are considered acceptable within a given context or situation.

Duty

A legal or moral obligation required to be fulfilled by an individual or organization.