The signing of long-term wage and price agreements and the relationship to inflation most likely raises the issue of:
A) price confusion problems.
B) future price uncertainty.
C) money illusion.
D) consumer price index (CPI) heteroskedasticity.
E) deflationary tendencies.

Question

Quizplus · Accepted Answer

Long-term wage and price agreements may create future price uncertainty, as inflation and other economic factors can vary over time. The agreements may have been signed based on current conditions, but those conditions may change in the future, leading to unforeseen consequences.

The Signing of Long-Term Wage and Price Agreements and the Relationship