From 1960 to 2015, inflation-adjusted wages increased by 165 percent in the U.S., and yet firms more than doubled the amount of labor they employed.

Question

Quizplus · Accepted Answer

Despite the increase in inflation-adjusted wages, firms employed more labor due to economic growth, increased demand for goods and services, and productivity improvements, which allowed them to afford higher wages while expanding their workforce.

From 1960 to 2015, Inflation-Adjusted Wages Increased by 165 Percent