The cost-of-living adjustments that are included in the wage contracts protect:
A)businesses from unexpected inflation.
B)workers from unexpected inflation.
C)workers from expected inflation.
D)employers from unexpected inflation.
E)consumers from expected inflation.

Question

Quizplus · Accepted Answer

Cost-of-living adjustments are typically included in wage contracts to protect workers from the negative effects of unexpected inflation. It ensures that their wages keep pace with the rising cost of living, preventing a reduction in their purchasing power. Other choices, such as A and D, suggest protection for businesses and employers, respectively, from unexpected inflation. Choice E implies that cost-of-living adjustments protect consumers, which is not entirely accurate. Therefore, option B is the best choice.

The Cost-Of-Living Adjustments That Are Included in the Wage Contracts