If the money wage rate rises,
A)there is neither a movement along or a shift in the AS curve.
B)the AS curve shifts leftward.
C)there is a movement down along the AS curve.
D)the AS curve shifts rightward.
E)there is a movement up along the AS curve.

Question

Quizplus · Accepted Answer

An increase in the money wage rate increases production costs, leading to a decrease in aggregate supply, which shifts the AS curve leftward.

If the Money Wage Rate Rises