The process by which changes in wages and prices causing further changes in wages and prices is called:
A) the snowball effect.
B) the vicious cycle.
C) a wage - price spiral.
D) the business cycle.

Question

Quizplus · Accepted Answer

A wage-price spiral is the process by which changes in wages and prices cause further changes in wages and prices. As prices rise, workers demand higher wages, and as wages rise, producers increase prices to cover their costs, leading to a cycle of increasing prices and wages. This cycle can continue until some external factor, such as government intervention or a recession, breaks the cycle.

The Process by Which Changes in Wages and Prices Causing