If Workers and Employers Agree to a Three-Year Wage Contract

Multiple Choice

If workers and employers agree to a three-year wage contract expecting 3% inflation and inflation turns out to be 5%,then

A) workers gain;employers gain.
B) workers gain;employers lose.
C) workers lose;employers gain.
D) workers lose;employers lose.
E) neither workers nor employers are affected by the unexpectedly high inflation.