A worker would be hurt least by inflation when the:
A) Worker anticipates inflation and increases savings at the bank
B) Worker is protected by a cost-of-living adjustment clause in an employment contract
C) Worker is protected by fixed annual increases in wages and benefits in an employment contract
D) Government increases the level of social security retirement benefits to correct for the effects of anticipated inflation

Question

Quizplus · Accepted Answer

A cost-of-living adjustment clause in an employment contract protects workers from the effects of inflation, as it increases their wage or benefits to adjust for the rise in prices. This ensures that the worker's purchasing power remains the same despite the increase in prices caused by inflation.

A Worker Would Be Hurt Least by Inflation When The