Suppose That a Labor Union Negotiates an Increase in Wages

question 30

Multiple Choice

Suppose that a labor union negotiates an increase in wages of 4 percent for the coming year because annual inflation for the past five years has been 4 percent.The expectations formed by the union are:

• A)pessimistic expectations.
• B)deductive expectations.
• C)rational expectations.
• D)adaptive expectations.
• E)optimistic expectations.

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Definitions:

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Contract

An accord between two or more parties that is recognizable by law and can be legally enforced.

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Letter of Acceptance

A formal document acknowledging receipt and agreement to the terms of a proposal, offer, or contract.