If Wages Rise Faster Than Increases in Labour Productivity, Then

question 92

Multiple Choice

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

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

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