Higher Consumer Prices Caused by External Forces Would Boost the Wage

question 136

Multiple Choice

Higher consumer prices caused by external forces would boost the wage costs of firms without any commensurate increase in the nominal demand for their products if

• A)long-term contracts were in force.
• B)all labor contracts were one year in duration.
• C)there were no COLAs.
• D)there were full COLA protection.

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Definitions:

Galapagos Islands

An archipelago in the Pacific Ocean, renowned for its unique endemic species and significant role in Charles Darwin's theory of evolution.

Continental South America

The main continental landmass of South America, encompassing a wide range of geographical features, climates, and ecosystems.

Arid Islands

Islands with a severely dry climate, receiving minimal annual rainfall, which affects their ecosystems and water resources.

Genetic Change

Alterations in the DNA sequence of an organism's genome, which can result in variations within a population over time.