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What Is the Effect on Aggregate Supply and Potential GDP

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What is the effect on aggregate supply and potential GDP of an increase in the money wage rate?


Definitions:

Tying Contracts

Agreements where the sale of one product (the tying product) is conditioned on the buyer purchasing another product (the tied product).

Antitrust Laws

Legislation aimed at preventing anti-competitive practices, monopolies, and to promote fair competition for the benefit of consumers.

Monetary Award

A financial compensation granted to a party, often as a result of a legal settlement or judgement.

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at preventing anticompetitive practices in their incipiency, including price discrimination, exclusive dealing agreements, and mergers.

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