If Wages Increase 10 Percent While Worker Productivity Increases 20

question 21

Multiple Choice

If wages increase 10 percent while worker productivity increases 20 percent,what would we expect the long-run aggregate supply curve to do?

• A)shift left (an increase in aggregate supply)
• B)shift right (an increase in aggregate supply)
• C)shift right (a decrease in aggregate supply)
• D)shift left (a decrease in aggregate supply)

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Definitions:

Investee

An entity in which an investor holds an interest, and typically has significant influence over, but does not control.

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns, encompassing a broad range of investment strategies and vehicles.

Operating Policies

Guidelines, rules, and procedures established by an organization to govern its operations and decision-making processes.