If Productivity Increases by 2 Percent but Wages Increase by 3

question 151

Multiple Choice

If productivity increases by 2 percent but wages increase by 3 percent, then it is most likely that the:

• A)short-run aggregate supply curve will shift up (to the left).
• B)short-run aggregate supply curve will shift down (to the right).
• C)short-run aggregate supply curve will not shift.
• D)aggregate demand curve will shift left.

Understand the principles of natural selection and its relevance to human evolution.

Understand the basic functions and characteristics of money.

Identify the regulatory bodies and mechanisms governing banks and their significance.

Recognize the impact of interest rates and incomes on the demand for money.