1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
irina [24]
4 years ago
9

Labor demands a higher wage to compensate for inflation, which leads to higher prices, then even higher wages. This is called a

wage-price spiral T OR F
History
1 answer:
PolarNik [594]4 years ago
5 0

The correct answer is TRUE.

The wage-price spiral is a macroeconomic theory that explains the existing causal effects behind sucessive price and wage increases.

This theory states that when there is an increase in wages, the income available for households rises too, leading to a larger demand of goods and services. If the demand-side grows too fast in a market, there is an excess of demand over the amount supplied and the market would adjust itself through a price increase. In this moment employees would demand higher wages to compensate for the inflation and to prevent their money from losing real value , so that they are able to consume the same amount of things with their salary as they could before. If wages increase, production costs for companies increase too and firms are forced to increase the market price of their products again in order to maintain their profit margins.

You might be interested in
When was the era of absolutism in Europe?
nexus9112 [7]

Answer:

1550 to 1800

Explanation:

Second, the Age of Absolutism typically refers to Europe roughly around 1550 to 1800. But absolute monarchs have ruled outside of Europe and during different periods in human history

6 0
3 years ago
Read 2 more answers
Read the sentence from Patrick Henry's speech to the Virginia convention. Why is this sentence an example of the use of metaphor
Alexandra [31]

Metaphor has been used in this sentence because in an indirect way the lamp has been compared to experience of the speaker which helps and guides him during dark times.

<u>Explanation:</u>

Metaphor is one of the most commonly used devices in the literature by the writers or in the poems by the poets. It is one of the most interesting devices to be used which creates great impact on the reader of the story or the poem or where ever it is used.

Metaphor is basically used to make a direct comparison of one thing with the other which in general has no relation with each other. Making this comparison makes the text understandable and well read for the readers of the story or the poem. It has a great impact.

4 0
4 years ago
Halimbawa ng suliraning pangkapaligiran​
Irina18 [472]

Answer:

*Polusyon sa Hangin

*kontaminasyon sa tubig at hangin

*pagnipis ng ozone layer, climate change at global warming

5 0
4 years ago
Explain how Persia was able to defeat Athens in the Peloponnesian War.
Aleksandr-060686 [28]
Basically Persia was able to defeat Athens in the Peloponnesian War because over the years Persia had grew in power and had gotten stronger than Athens, But even though the Athens were very powerful their selves. It was no match against the Persians and they had unfortunately fallen in a very long battle.  

Did this help with your question?
7 0
3 years ago
How have Presidents used their role as commander in chief to expand the powers of the executive branch?
tatiyna
The way that presidents used their role as commander in chief to expand the powers of the executive branch is :
- by creating free market economy
- by declaring states of emergency which will grant them power

hope this helps
8 0
4 years ago
Other questions:
  • The optimistic characteristics of the eighteenth-century Enlightenment involved all the following except...
    6·2 answers
  • Which policy is most similar to Soviet totalitarianism under Joseph Stalin?
    14·2 answers
  • Which is not one of the four pillars of democracy? opportunity for education taxation without representation equality before the
    10·2 answers
  • What were some of the major movements of people throughout the world from 1500-1914?
    5·1 answer
  • What social philosophy of the time period does senator henry Cabot lodge believe in
    9·1 answer
  • The belief that national interests as a whole should be moreimportant than
    12·1 answer
  • List Five Advantages to High Ground and a Defensive Fighting Position
    10·1 answer
  • WHATS TICCI TOBYS CACTH PHRASE
    15·2 answers
  • The state that has disproportionate power because it holds the first presidential primary each election year is
    12·1 answer
  • the low literacy rate was the most important social problem facing by pakistan between 1947 and 1949 do you agree ?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!