If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected ?

Related Mcqs:

In the short run unemployment may fall below the natural rate of unemployment if ?

A. Nominal wages have risen less than inflation B. Nominal wages have risen at the same rate as inflation C. Nominal wages have risen more than inflation D. Nominal wages have risen less than unemployment...

The Phillips curve shows the relationship between inflation and what ?

A. The balance of trade B. The rate of growth in an economy C. The rate of price increase D. Unemployment...

Which of the following statements is correct ?

A. none of these answers B. The nominal interest rate is the inflation rate minus the real interest rate C. The real interest rate is the nominal interest rate minus the inflation rate D. The nominal interest rate is the real interest rate minus the inflation rate....

Under which of the following conditions would you prefer to be the lender ?

A. The nominal rate of interest is 15 percent and the inflation rate is 14 percent B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent C. The nominal rate of interest is 12 percent and the inflation rate is 9 percent D. The nominal rate of interest is … Under which of the following conditions would you prefer to be the lender ?Read More...

If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?

A. neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract B. None of these answers C. borrowers will gain at the expense of lenders D. lenders will gain at the expense of borrowers...