Suppose in Country X, Wages of Workers Are Increased in the Beginning

question 84

Multiple Choice

Suppose in Country X, wages of workers are increased in the beginning of a financial year, anticipating high inflation in the economy.However prices remain unchanged during the year.Everything else remaining constant, which of the following will be observed in this economy?

• A)The cost of labor, that is the real wage will decline
• B)The current profits of the firm will rise
• C)Aggregate supply in the economy will increase
• D)Annual production in the economy will remain unaffected
• E)The aggregate supply curve will move to the left

---

Definitions:

Supportive Leadership

A leadership style that focuses on building trust, respect, and empathy with team members while encouraging their development and well-being.

Planning

The process of outlining the steps necessary to achieve a desired outcome or goal, involving setting objectives, determining actions, and allocating resources.

Key Components

Essential parts, elements, or factors that are necessary for the functioning or effectiveness of a system, process, or concept.

Developing Leadership

The act or process of enhancing one's leadership skills and abilities through education, experience, and self-reflection.