Expected future real wages would cause
A)the aggregate labour supply to shift left.
B)the aggregate labour demand to shift left.
C)the aggregate labour supply to shift right.
D)the aggregate labour demand to shift right.

Question

Quizplus · Accepted Answer

If workers expect higher future wages, they will have an increased incentive to work and will supply more labour in the present, causing the aggregate labour supply to shift right. This is because workers will be more willing to work the same amount for lower pay in the present if they anticipate higher pay in the future.

Expected Future Real Wages Would Cause