If the money wage rate rises, then the
A) SAS curve shifts leftward.
B) LAS curve shifts leftward.
C) LAS curve shifts rightward.
D) SAS curve shifts rightward.

Name: If the money wage rate rises, then the A) SAS curve shifts leftward. B) LAS curve shifts leftward. C) LAS curve shifts rightward. D) SAS curve shifts rightward.
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Question

Quizplus · Accepted Answer

An increase in the money wage rate raises production costs, leading to a decrease in short-run aggregate supply, which shifts the SAS curve leftward.

If the Money Wage Rate Rises, Then the