The Basic Explanation for High Real Wages in the United

question 78

Multiple Choice

The basic explanation for high real wages in the United States and other industrially advanced economies is that the

• A)labor supply has increased more rapidly than labor demand in these nations.
• B)labor demand has increased more rapidly than labor supply in these nations.
• C)unemployment in these nations has remained relatively stable over the years.
• D)inflation rate in these nations has been higher than the rate of increase in nominal wages.

---

Definitions:

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, governing both voluntary actions and involuntary processes.

Infant

A very young child, especially one newly or recently born.

Maturation

The process of maturing or reaching full development, often referring to natural growth and development processes in organisms.

Psychological Changes

Alterations in behavior, thought, or emotion that occur over time in an individual.