A Simultaneous Rise in Productivity and Nominal Wages Would Shift

question 270

Multiple Choice

A simultaneous rise in productivity and nominal wages would shift the short-run aggregate supply curve to the:

• A) right if the rise in nominal wages is larger than the rise in productivity.
• B) right if the cost per unit of output rises.
• C) left if the cost per unit of output falls.
• D) left if the rise in nominal wages is larger than the rise in productivity.

---

Definitions:

Economies Of Scope

Cost advantages that enterprises obtain due to a larger scope of operations, where producing a wider variety of goods or services results in lower average costs.

Economies Of Scope

Cost advantages that result from a firm's ability to produce multiple products more efficiently together than separately.

Seasonal Demand

Fluctuations in the demand for certain products or services that occur at specific times of the year.

Diseconomies Of Scope

Exist when the cost of producing two products jointly is more than the cost of producing those two products separately.