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.

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Definitions:

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