When Wages Are Set by Contract,inflation

question 18

Multiple Choice

When wages are set by contract,inflation

• A)reduces real wages;this likely makes labor markets more flexible.
• B)reduces real wages;this likely makes labor markets less flexible.
• C)raises real wages;this likely makes labor markets more flexible.
• D)raises real wages;this likely makes labor markets less flexible.

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Definitions:

Partial Payment

Partial payment is a payment that is made towards a debt or invoice that is less than the full amount due at the time of payment.

On Credit

Purchasing goods or services with the agreement to pay for them at a later date.

Assets

Resources owned by a business or individual that have economic value and can be converted into cash.