If the money wage rate rises, then the
A) SAS curve shifts rightward.
B) SAS curve shifts leftward.
C) LAS curve shifts rightward.
D) LAS curve shifts leftward.

Question

Quizplus · Accepted Answer

When the money wage rate rises, the cost of production for firms increases. This typically leads to a decrease in the quantity of goods and services that firms are willing to supply at any given price level, causing the Short-Run Aggregate Supply (SAS) curve to shift leftward.

If the Money Wage Rate Rises, Then the