The basic explanation for high real wages in the United States and other industrially advanced economies is that the
A)labor supply has increased more rapidly than labor demand in these nations.
B)labor demand has increased more rapidly than labor supply in these nations.
C)unemployment in these nations has remained relatively stable over the years.
D)inflation rate in these nations has been higher than the rate of increase in nominal wages.

Question

Quizplus · Accepted Answer

The primary reason for high real wages in industrially advanced economies like the United States is that labor demand has increased more rapidly than labor supply. This is largely due to technological advancements and higher productivity, which increase the demand for skilled labor, pushing wages up.

The Basic Explanation for High Real Wages in the United