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:

High Concentrations

Refers to a large amount of a particular substance within a specific area or volume.

Obtainable

Capable of being acquired or secured.

Parallelism

The use of components in sentences that are grammatically the same, or similar in their construction, sound, meaning, or meter.

Consistency

The quality of maintaining a uniform, stable, and predictable character or performance over time.