Which of the Following Correctly Describes a Wage-Price Spiral

question 63

Multiple Choice

Which of the following correctly describes a wage-price spiral?

• A) An increase in nominal wages causes inflation, and inflation causes workers to demand even higher wages in order to keep their real income constant. This cycle can repeat itself.
• B) An increase in real wages due to growth in worker productivity causes inflation, which in turn increases worker productivity.
• C) A decrease in prices causes workers to demand higher wages, which in turn puts additional downward pressure on prices.
• D) None of the above.

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Definitions:

Symbolic Interactionist

A theoretical perspective in sociology that focuses on the meanings individuals attach to objects, actions, and events in their social world.

Functionalist

A perspective in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of the individuals in that society.

Feminist

A person who supports the advocacy of women's rights on the basis of the equality of the sexes.

Post-structuralist

Pertaining to a movement in thought that advocates for the deconstruction of structuralist interpretations, focusing instead on the fluidity of meanings and the instability of concepts.