Asked by Aneri Patel on Apr 29, 2024
Verified
Which of the following groups is most hurt by unanticipated inflation?
A) Workers with cost of living adjustment clauses in their labor contracts.
B) Social Security recipients.
C) Workers who sign new work agreements every day.
D) Wealthy people who hold much cash in their wall safes.
Unanticipated Inflation
Inflation that occurs when actual inflation rates exceed what is expected, potentially disrupting economic planning and savings.
Cost Of Living Adjustment
An increase in income to match the rise in the price of goods and services, maintaining the purchasing power in inflationary times.
Social Security Recipients
Social Security recipients are individuals who receive benefits from the Social Security program, which is a government-run program providing financial assistance to people with disabilities, retirees, and their survivors.
- Understand the concept of inflation and its impact on different socioeconomic groups.
Verified Answer
JP
Josthel PiresMay 02, 2024
Final Answer :
D
Explanation :
Wealthy people who hold much cash in their wall safes are most hurt by unanticipated inflation because the real value of their cash holdings decreases as prices increase. Other groups mentioned may have some protection or adjustment mechanisms against inflation.
Learning Objectives
- Understand the concept of inflation and its impact on different socioeconomic groups.