Multiple Choice
If a country experiences persistently low inflation, which of the following tends not to occur?
A) Nominal wages will be set for shorter periods of time.
B) Workers are resistant to decreases in the nominal wage.
C) Wage indexation will become less important.
D) The Phillips curve relation becomes weaker.
E) The markup over labour costs will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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