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:

Normal Portion

A standard or average size or amount of a food serving or meal based on dietary guidelines or social norms.

Arousal

A physiological and psychological state of being awake, alert, and attentive, often a prerequisite for effective performance in various tasks.

Behavior

Actions or reactions of an individual or group in response to external or internal stimuli.

Circadian Rhythm

The natural, internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.