An economy is experiencing a period of very low unemployment. A large manufacturing union successfully negotiates a 10% wage increase for its members. In the following months, the country's major supermarket chains raise their prices, citing increased transportation and labor costs. In response, non-unionized retail workers begin demanding higher pay to keep up with the rising cost of groceries. Which of the following statements best analyzes the economic dynamic described in this scenario?

Arrange the following events to correctly depict the sequence of a wage-price spiral that begins with an initial increase in the general price level.

Analyzing an Inflationary Cycle

Explaining the Wage-Price Spiral Mechanism