题目内容

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

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Wage indexation

A. increases nominal wages periodically in accordance with the increase in prices over a given time period
B. helps the economy adjust more rapidly back to the natural unemployment rate after a supply shock
C. is a method of preventing inflation by taxing away what workers may have gained from unanticipated inflation
D. provides protection against purchasing power loss for over half of the U.S. work force
E. is most prevalent n countries with a history of low inflation rates

The full indexation of wages and prices

A. is widespread in most industrial countries
B. would ensure that each year's inflation rate could always be correctly anticipated
C. would cause some real wage rigidities
D. would greatly help an economy to adjust back to full employment after a supply shock
E. would eliminate all lags between measuring price changes and making wage payments

The view that a small positive rate of inflation may actually be good for the economy was first advanced by

A. Ben Bernanke
B. Milton Friedman
C. John Maynard Keynes
D. William Poole
E. James Tobin

An unanticipated increase in inflation is a problem since

A. gains and losses from real wealth transfers cannot be easily predicted
B. higher inflation always means lower growth in real GDP
C. it will lead to a decrease in nominal wages
D. households who hold fixed dollar assets will experience a higher real rate of return
E. none of the above

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