Which of the Following Statements Is True About Andy If

question 100

Multiple Choice

Which of the following statements is true about Andy if the inflation rate is increasing every year by 1 percent and there is no growth in his salary?

• A)Andy can afford to buy more luxury items as prices go down.
• B)Andy's purchasing power will decrease.
• C)Andy's employment opportunities will increase.
• D)The lack of growth in Andy's salary will increase the average inflation rate .
• E)Andy's cost of borrowing will be reduced.

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Definitions:

Unions

Organizations formed by workers to collectively bargain for better wages, benefits, and working conditions with their employers.

Strikes

A work stoppage caused by the mass refusal of employees to work, typically to enforce demands upon their employer.

Wagner Act

A foundational piece of US labor law established in 1935 that guaranteed workers the right to form unions and engage in collective bargaining.

Supply of Labor

Refers to the total hours that workers wish to work at a given real wage rate, across the entire economy.