1091EconomicsMedium
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?
Aneither workers nor firms will gain because the increase in wages in fixed in the labor agreement
BWorkers will gain at the expense of firms
Cfirms will gain at the expense of workers.
Dnone of these answers
Correct answer
C. firms will gain at the expense of workers.
Explanation
The correct answer is firms will gain at the expense of workers..