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A) when firms need to continually meet higher wage demands because unemployment is close to zero.
B) when falling wages lead to rapidly falling prices, causing deflation.
C) when higher prices lead to rapidly falling real wages, which prompts demands for higher nominal wages.
D) when wages are indexed by law to the CPI.
E) A) and B)
F) A) and D)
F) A) and D)
Correct Answer
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Correct Answer
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