If Wage Rates Rise at the Same Time That Labor

question 128

Multiple Choice

If wage rates rise at the same time that labor productivity increases,what is the effect on short-run aggregate supply (SRAS) ?

• A) SRAS rises.
• B) SRAS falls.
• C) SRAS remains constant.
• D) SRAS may rise,fall,or remain constant.

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Definitions:

Government Policy

Decisions, plans, and actions that are undertaken by a government to achieve specific goals within a society.

Computerized Inventory

The use of computer systems and software to track and manage inventory levels, orders, sales, and deliveries.

Preset Standards

Preset standards are predetermined criteria or benchmarks used to measure quality, productivity, or other performance levels in various processes.

Information Flowing

The movement or transfer of data and instructions among individuals or organizations, facilitating decision-making and coordination of activities.