If Wage Rates Fall at the Same Time That Labor

question 154

Multiple Choice

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

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

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Definitions:

Absolute Frequency

The count of occurrences or instances of a particular event or property in a dataset.

Ratio

A quantitative relationship between two numbers showing how many times the first number contains the second.

Variable

A symbol or placeholder that represents an unknown or changeable value in mathematics and programming.

Values

Fundamental beliefs or standards that guide behavior and decision-making in individuals or societies.