If Wages Rise Faster Than Increases in Labour Productivity,then Unit

question 59

Multiple Choice

If wages rise faster than increases in labour productivity,then unit labour costs will

• A)fall and the AS curve will shift left.
• B)fall and the AS curve will shift right.
• C)rise and the AS curve will shift left.
• D)rise and the AS curve will shift right.
• E)not change because only total labour costs change.