If labor union leaders believe that the Fed is more inclined to fight inflation than unemployment, then they are more likely to:
A) be reluctant in demanding a wage hike.
B) demand an increase in the number of work days for the same wage.
C) demand a wage hike.
D) demand a wage decrease.

Question

Quizplus · Accepted Answer

If labor union leaders believe that the Fed is more inclined to fight inflation than unemployment, they are likely to be cautious in demanding a wage hike as it could lead to inflationary pressures. Therefore, they would be more reluctant in demanding a wage hike.

If Labor Union Leaders Believe That the Fed Is More