Suppose That Wages Fall and Productivity Rises in a Particular

question 9

Multiple Choice

Suppose that wages fall and productivity rises in a particular economy.Ceteris paribus,the aggregate:

• A)supply curve will shift leftward, and potential output will remain constant
• B)supply curve will shift rightward, and potential output will increase
• C)supply curve will shift leftward, and potential output will decrease
• D)supply curve will shift rightward, and potential output will remain constant
• E)demand curve necessarily shifts rightward

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Definitions:

Management Trainee

An entry-level position in an organization designed to give the individual hands-on experience in various departments as preparation for a future managerial role.

Labor Union

Group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions.

Effective Tools

Instruments or methodologies that have been proven to efficiently accomplish a task or achieve a specific outcome.

Union Contract

A legally binding agreement between a union representing employees and their employer, outlining wages, working conditions, and other employment terms.