Both theory and history point to a close relationship between increases in
A)labor demand and increases in labor supply.
B)labor demand and decreases in real wages.
C)the productivity of labor and increases in real wages.
D)interest rates and decreases in real wages.

Question

Quizplus · Accepted Answer

According to economic theory and historical evidence, there is a positive correlation between the productivity of labor and increases in real wages. In other words, when workers are more productive, they are able to produce more goods and services per hour worked, which can lead to higher wages as employers are willing to pay more for their output. This relationship is supported by data from various countries over time. Therefore, option C is the best choice.

Both Theory and History Point to a Close Relationship Between