Question

Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages based on changes in the consumer price index are called _____.

a. gold clauses

b. indemnification clauses

c. escalator clauses

d. arbitration clauses

Answer 1

c. escalator clauses

Step-by-step explanation:

Based on the information provided within the question it can be said that the term being described is called an escalator clause. Like mentioned in the question this term refers to a clause within a contract that allows for an increase in in the price or wage stated in the contract but only under the specific conditions stated.