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Suppose That a Labor Union Negotiates an Increase in Wages

Question 30

Multiple Choice

Suppose that a labor union negotiates an increase in wages of 4 percent for the coming year because annual inflation for the past five years has been 4 percent.The expectations formed by the union are:


A) pessimistic expectations.
B) deductive expectations.
C) rational expectations.
D) adaptive expectations.
E) optimistic expectations.

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