Answer:
The correct answer is B. Make concessions in response to union demands during a bargaining session.
Step-by-step explanation:
Wagner's Law is framed within the theories about the growth of public spending, within which the one that explains this growth based on the demand for public spending.
This law, whose name derives from the German economist Adolph Wagner, considers that the economic development of a country drives increasing pressures on the part of society in favor of an increase in public spending, for two types of reasons:
- The first refers to the fact that a more developed society is also more complex with a greater number of conflicts among its members, which requires a greater intervention of the State in its solution.
- The second concerns the characterization of public goods and services as superior and elastic goods, that is, the income elasticity of public spending is greater than unity.