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Employees at the hospital have negotiated a 3 percent increase in wages for the next year, based on ...

Employees at the hospital have negotiated a 3 percent increase in wages for the next year, based on their inflation expectations. If inflation is actually 5 percent over the next year, which of the following will occur?
A) Unemployment of hospital employees will rise.
B) Real wages for hospital employees will fall.
C) Inflation will be 3 percent the following year.
D) The increase in inflatioAnswer: ected.

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InMacro

Edition: 1^st

Authors: Hubbard, O'Brien

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this is exactly what I needed

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