The Chilling Effect of Interest Arbitration Refers to the Possibility

question 4

Multiple Choice

The chilling effect of interest arbitration refers to the possibility that:

• A) hostility between negotiators is increased
• B) negotiators may become dependent upon a third party making a decision for them
• C) the process is expensive
• D) there may be no incentive for negotiators to make concessions necessary to reach an agreement
• E) the process is slow

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Definitions:

Full Employment GDP

The level of gross domestic product achieved when there is no cyclical unemployment in the economy, representing an ideal economic state where all willing and able workers find employment.

Economic Problem

When we have limited resources available to fulfill society’s relatively limitless wants.

Unemployment

The situation in which individuals who are capable of working and actively seeking employment are unable to find a job.

Inflation

A rise in the general level of prices of goods and services in an economy over a period of time.