Multiple Choice
A worker has negotiated a nominal wage contract with his employer for a period of 3 years.Which of the following will happen if the rate of inflation rises beyond the worker's expectations during this period?
A) The worker will be better off.
B) The worker will be worse off.
C) The worker's real wage will increase.
D) The company's shareholders will be worse off.
Correct Answer:
Verified
Correct Answer:
Verified
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