Suppose in Country X, Wages of Workers Are Increased in the Beginning

question 84

Multiple Choice

Suppose in Country X, wages of workers are increased in the beginning of a financial year, anticipating high inflation in the economy.However prices remain unchanged during the year.Everything else remaining constant, which of the following will be observed in this economy?

• A)The cost of labor, that is the real wage will decline
• B)The current profits of the firm will rise
• C)Aggregate supply in the economy will increase
• D)Annual production in the economy will remain unaffected
• E)The aggregate supply curve will move to the left

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Definitions:

Marketing Plan

A detailed plan or guide that illustrates a company's marketing and advertising strategies for the upcoming period.

Marketing Exchange

The process through which two or more parties transfer goods, services, or ideas in return for something of value.

Supply Chain Logistics

Overseeing the movement and storage of goods, services, raw materials, in-progress inventory, and final products from where they originate to where they are consumed.

Production Management

Production Management involves planning, coordination, and control of industrial processes to ensure that goods are produced efficiently, effectively, and at the right quality.