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.

C

Economics

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Assume that price exceeds average variable cost over the relevant range of demand

If a monopolistically competitive firm is producing at an output where marginal revenue is $111.11 and marginal cost is $118, then to maximize profits the firm should increase its output.

Economics

One characteristic of a financial crisis caused by macroeconomic imbalances is that it

A) may or may not be predictable. B) will occur eventually even though its timing is unpredictable. C) may be caused by expansionary fiscal policies accompanied by high budget deficits. D) may be caused by high deficits financed by increases in the money supply. E) All of the above.

Economics