Which of the following will tend to occur when a high proportion of a country's workers have indexed wages?
A) The unemployment rate will be relatively high.
B) The unemployment rate will be relatively low.
C) The inflation rate will be relatively low.
D) A given change in the unemployment rate will cause a larger change in the inflation rate.
E) A given change in the unemployment rate will cause a smaller change in the inflation rate.
Correct Answer:
Verified
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