A general increase in wages will result primarily in the _____ curve shifting to the _____.
A) aggregate demand; right
B) aggregate demand; left
C) short-run aggregate supply; right
D) short-run aggregate supply; left

Question

Quizplus · Accepted Answer

A general increase in wages typically increases the cost of production for businesses. This leads to a decrease in the quantity of goods and services that companies are willing to supply at any given price level, which is represented by a leftward shift in the short-run aggregate supply (SRAS) curve.

A General Increase in Wages Will Result Primarily in the _____