Inflation - Long-Term Wage and Price Contracts
7 important questions on Inflation - Long-Term Wage and Price Contracts
What do union wage contracts often do regarding pay rates?
What do supplier contracts for raw materials or parts do?
What do these contracts reflect when signed?
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If inflation is expected at 3% a year, what might the contract include?
Why can wages and prices not be changed quickly during the contract period?
How does this affect inflation's rise or fall?
What effect does this stability have on inflation in the short run?
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