Suppose a Trade Union and a Firm Agree to Increase

question 78

Multiple Choice

Suppose a trade union and a firm agree to increase the wage rate by the same percentage as the increase in the Consumer Price Index. If the CPI increases by 5 percent, then the real income of workers will

• A)increase by 5 percent as well.
• B)remain unchanged, accounting for bias in the calculation of the CPI.
• C)decrease by 5 percent, accounting for bias in the calculation of the CPI.
• D)increase by more than 5 percent, accounting for bias in the calculation of the CPI.
• E)increase by less than 5 percent, accounting for bias in the calculation of the CPI.

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Definitions:

Hemispheric Specialization

The distinction in cognitive functions between the left and right hemispheres of the brain, where each hemisphere is specialized for certain tasks.

Glial Cells

Non-neuronal cells in the central nervous system that support, protect, and nourish neurons, playing a key role in maintaining homeostasis.

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron to another target neuron, muscle cell, or gland cell.