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    Macroeconomics Study Set 5
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    Exam 8: Inflation
  5. Question
    Labor Contracts That Include So-Called COLA Provisions
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Labor Contracts That Include So-Called COLA Provisions

Question 1

Question 1

Multiple Choice

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

Correct Answer:

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