A cost-of-living adjustment (COLA) clause in an employment contract a) requires the employee to adjust work hours to keep pace with inflation. b) ensures that a wage is sufficient to cover the cost of living given prices in the local area. Oc) requires the employer to increase wages to keep pace with inflation. Od) ensures that jumps in the cost of living will not come as a surprise. e) entitles the employee to take a second job to ensure earnings keep pace with inflation.
A cost-of-living adjustment (COLA) clause in an employment contract a) requires the employee to adjust work hours to keep pace with inflation. b) ensures that a wage is sufficient to cover the cost of living given prices in the local area. Oc) requires the employer to increase wages to keep pace with inflation. Od) ensures that jumps in the cost of living will not come as a surprise. e) entitles the employee to take a second job to ensure earnings keep pace with inflation.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A cost-of-living adjustment (COLA) clause in an employment contract
a) requires the employee to adjust work hours to keep pace with inflation.
b) ensures that a wage is sufficient to cover the cost of living given prices in the
local area.
Od requires the employer to increase wages to keep pace with inflation.
O d) ensures that jumps in the cost of living will not come as a surprise.
entitles the employee to take a second job to ensure earnings keep pace with
inflation.
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