Question

6) Labor contracts that include so-called COLA provisions
A) tend to link money wages to price increases
B) serve to preserve the purchasing power of workers
C) are a common form of wage indexation in many labor markets
D) often tie nominal wages to a specific price index
E) all of the above

Answer 1

6)E) all of the above.

Explanation :

Labor contracts that include so-called COLA provisions tend to link money wages to price increases, serve to preserve the purchasing power of workers, are a common form of wage indexation in many Labor markets, often tie nominal wages to a specific price index.Labor contract is a kind of agreement taking place between employees and management of companies and organizations taking into consideration conditions related to work, remuneration, wages, salaries etc. It consists a framework of general guidelines and obligations regarding payment, risks, description of work to be done, etc.