If Productivity Increases by 3 Percent but Wages Increase by 4

question 37

Multiple Choice

If productivity increases by 3 percent but wages increase by 4 percent, then it is most likely that the price level will:

• A)rise by 1 percent.
• B)fall by 1 percent.
• C)rise by 7 percent.
• D)fall by 7 percent.

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