Workers will have greater incentives to push for higher wages when government policymakers place greater concern on ________ than ________ and are thus ________ likely to adopt accommodative policies.
A)inflation; unemployment; less
B)inflation; unemployment; more
C)unemployment; inflation; less
D)unemployment; inflation; more

Question

Quizplus · Accepted Answer

When policymakers are more concerned about unemployment than inflation, they are more likely to adopt accommodative policies such as increasing government spending or lowering interest rates. This can lead to a reduction in unemployment and an increase in demand for labor, giving workers more bargaining power to push for higher wages. Therefore, workers will have greater incentives to push for higher wages when policymakers are more concerned about reducing unemployment than controlling inflation.

Workers Will Have Greater Incentives to Push for Higher Wages