If Wages Rise Faster Than Increases in Labour Productivity,then Unit

question 59

Multiple Choice

If wages rise faster than increases in labour productivity,then unit labour costs will

• A)fall and the AS curve will shift left.
• B)fall and the AS curve will shift right.
• C)rise and the AS curve will shift left.
• D)rise and the AS curve will shift right.
• E)not change because only total labour costs change.

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Definitions:

Annual Salary

Annual Salary is the fixed amount of money or compensation paid to an employee by an employer over a year for their services.

Occupational Segregation

The distribution of people across and within occupations and jobs, based significantly on demographic characteristics, notably gender or race.

Demographic Characteristics

The statistical characteristics of human populations, such as age, sex, and income, used especially to identify markets.

Future Annual Earnings

Projected earnings or income of an individual, company, or organization for upcoming years.