If Workers Push for Wages That Are Beyond What Productivity

question 73

Multiple Choice

If workers push for wages that are beyond what productivity gains can justify ________.

• A)a temporary negative supply shock ensues driving up prices
• B)a negative output gap ensues which will lead to higher unemployment if the Federal Reserve does not act
• C)and the Federal Reserve eases monetary policy aimed at increasing aggregate demand to counter the negative supply shock,a price-wage spiral could ensue
• D)all of the above
• E)none of the above

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Definitions:

Equal Wages

The principle or practice of paying the same salary to employees in the same position and qualifications, regardless of gender, ethnicity, or other discriminatory factors.

Equal Pay Act

A federal law aimed at abolishing wage disparity based on sex by ensuring that men and women receive equal pay for equal work.

Substantially Equal Work

A principle in employment law that requires employees performing jobs that require substantially similar skill, effort, and responsibility to be paid equally, regardless of gender or other discriminatory bases.

Pay Scales

A structure of job positions and salaries within an organization, often determined by experience, education, and responsibility level.