Higher Consumer Prices Caused by External Forces Would Boost the Wage

question 136

Multiple Choice

Higher consumer prices caused by external forces would boost the wage costs of firms without any commensurate increase in the nominal demand for their products if

• A)long-term contracts were in force.
• B)all labor contracts were one year in duration.
• C)there were no COLAs.
• D)there were full COLA protection.

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Definitions:

Dividends

A corporation allocates a segment of its profits to its shareholders in the form of payments, distributing its earnings among them.

Millions

A numerical value representing one million units of a given item or currency, often used to describe large quantities or financial figures.

Current Assets

Holdings that are likely to be transformed into cash, merchandised, or expended either within the span of one year or throughout the standard operating period of the enterprise, should that exceed one year.

Accounts Receivables

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.