If Nominal Wages Cannot Be Cut, Then the Only Way

question 69

Multiple Choice

If nominal wages cannot be cut, then the only way to cut real wages is by:

• A)inflation.
• B)unions.
• C)legislation.
• D)productivity increases.

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Definitions:

Coercive Power

Power that is backed by the threat of force.

Football Coach

An individual responsible for directing, training, and leading a football team, emphasizing strategies, techniques, and physical fitness.

Threatens

To express an intention to inflict pain, injury, damage, or other hostile action on someone in retribution for something done or not done.

Bureaucracies

Organized administrative systems governed by a set of rules and regulations, typically within large organizations or governments, to ensure efficiency and effectiveness.