Suppose a Worker Signs a Contract Containing an 8 Percent

question 88

Multiple Choice

Suppose a worker signs a contract containing an 8 percent nominal wage increase with inflation expected to be 3 percent.Inflation turns out to be 6 percent,but the contract also contains 60 percent COLA protection.The worker's real wage under the contract

• A)falls by 1.2 percent.
• B)falls by 2.4 percent.
• C)rises by 3.8 percent.
• D)rises by 3.0 percent.
• E)rises by 1.8 percent.

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Dispose

To get rid of something, typically by throwing away or giving it away.

Type, Grade, Quantity

Specifications that define the quality and amount of materials or goods required for a particular purpose or contract.

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A place, amenity, or piece of equipment provided for a particular purpose or function, often related to the execution of a service or production of goods.

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Property that has been discarded by the owner, who has no intention of reclaiming it.