If Wage Rates Rise at the Same Time That Labor

question 128

Multiple Choice

If wage rates rise at the same time that labor productivity increases,what is the effect on short-run aggregate supply (SRAS) ?

• A) SRAS rises.
• B) SRAS falls.
• C) SRAS remains constant.
• D) SRAS may rise,fall,or remain constant.

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Definitions:

Accepted Check

An accepted check is a check that the drawee bank has certified as good for payment, ensuring the availability of funds when presented.

Output Contract

An agreement in which a seller agrees to sell and a buyer agrees to buy all the output that a producer produces, without specifying exact quantities.

Manufacturers

Entities involved in the process of converting raw materials into finished products through various means, including physical, labor-intensive, or mechanical processes.

Distributors

Entities that buy products directly from manufacturers and sell them to retailers or end consumers, acting as intermediaries in the supply chain.