This is a situation where rising wages lead to higher prices, which in turn lead to demands for higher wages, creating a cycle of inflation. It can be caused by factors such as strong labor unions, or when wages and prices are indexed to each other.
This is a situation where rising wages lead to higher prices, which in turn lead to demands for higher wages, creating a cycle of inflation. It can be caused by factors such as strong labor unions, or when wages and prices are indexed to each other.