Question

In: Economics

the higher the anticipated inflation rate, ... a. the more workers will ask for in wages...

the higher the anticipated inflation rate, ...

a. the more workers will ask for in wages and the more firms will agree to pay

b.the more workers will ask for in wages and the less firms will agree to pay

c. the less workers will ask for in wages and the less firms will agree to pay

d. the higher the real wage increases offered by firm

e. the higher the real wage increases asked for by workers

Solutions

Expert Solution

Ans: a ) the more workers will ask for in wages and the more firms will agree to pay.

Explanation:

when there is higher anticipated inflation rate then the price level will increase in future. As a result workers will ask more in wages and the firms will agree to pay more.

Rahul Sunny answered 2 years ago
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