Employees at the University Have Negotiated a 5 Percent Increase

question 24

Multiple Choice

Employees at the university have negotiated a 5 percent increase in wages for the next year,based on their inflation expectations.If inflation is actually 4 percent over the next year,which of the following will occur?

• A)Unemployment of university employees will fall.
• B)Real wages for university employees will rise.
• C)Inflation will be 5 percent the following year.
• D)The decrease in inflation is expected.

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Definitions:

External Auditor

A professional firm or individual outside of an organization hired to examine its financial records and attest to the accuracy of its financial statements.

External Administration

External administration pertains to a process where an external person or entity is appointed to investigate, manage, and potentially restructure a financially distressed company's affairs to recover debts.

Corporation Act

Legislation governing the legal formation, operation, and regulation of companies.

Members' Voluntary Winding Up

A process in corporate law where the shareholders of a solvent company decide to put the company into liquidation and distribute its assets.