Suppose Workers Agreed to a Contract That Guaranteed a Real

question 141

Multiple Choice

Suppose workers agreed to a contract that guaranteed a real wage increase of 3 percent per year.If the inflation rate was 7 percent over the following year,what is the required increase in the nominal wage to meet the contract requirements?

• A) 10 percent
• B) 3 percent
• C) 4 percent
• D) 7 percent
• E) 1 percent

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Definitions:

Economic Climate

Refers to the overall condition of the general economic environment in a specific region or country, encompassing factors like employment rates, GDP growth, and consumer spending.

Wage Gap

The disparity in earnings among different groups of workers, often highlighted by differences due to gender, race, or education.

Age Bias

Discrimination or prejudice against individuals or groups based on their age.

Reasonable Pay

Compensation that is fair and appropriate for the work performed, considering factors like industry standards, experience, and geographic location.