If Workers Demand and Receive Higher Real Wages, the Cost

question 27

Multiple Choice

If workers demand and receive higher real wages, the cost of production ________ and the short-run aggregate supply curve shifts ________.

• A) rises; leftward
• B) rises; rightward
• C) falls; leftward
• D) falls; rightward

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Definitions:

Price/Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Dividend Yield

A monetary ratio demonstrating the proportion of yearly dividends distributed by a corporation in relation to its share value.

Common Stock

The basic voting stock issued by a corporation.