Why Do Wage Increases Along with Increases of Other Input

question 81

Essay

Why do wage increases along with increases of other input prices impact the short-run aggregate supply but not the long-run aggregate supply, unless they reflect permanent reductions in the supply of those inputs?

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Definitions:

Five-Figure Accuracy

The level of precision in numerical reporting or computation that includes five significant digits.

Four-Figure Accuracy

A term used to describe a level of precision in numerical calculations or measurements that ensures accuracy to the nearest thousand.

Four-Figure Accuracy

A precision level that indicates numerical values are accurate to within plus or minus one out of ten thousand.

Five-Figure Accuracy

Describes numerical values precise to five digits.