Cost of Living Adjustments and the Wage–Price Spiral. Suppose organized labor has successfully bargained for cost of living increases for its workers. That is, when prices rise—as measured by the...

Cost of Living Adjustments and the Wage–Price Spiral. Suppose organized labor has successfully bargained for cost of living increases for its workers. That is, when prices rise—as measured by the CPI—wages are automatically adjusted by the same percentage. Would this make the economy more or less likely to experience a wage–price spiral?