An alternative view to that held by neo-classical economists is that:
A) centralised wage bargaining is conducive to lower wage inflation and lower unemployment.
B) decentralised wage bargaining is conducive to lower wage inflation and lower unemployment.
C) centralised wage bargaining increases wages and increases unemployment.
D) centralised wage bargaining decreases wages but increases unemployment.

Question

Quizplus · Accepted Answer

Centralised wage bargaining can lead to lower wage inflation and lower unemployment because it allows for coordinated wage setting across sectors, potentially leading to more stable economic conditions and better alignment of wage increases with productivity growth.

An Alternative View to That Held by Neo-Classical Economists Is