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If Productivity Increases by 2 Percent but Wages Increase by 3

Question 151

Multiple Choice

If productivity increases by 2 percent but wages increase by 3 percent, then it is most likely that the:


A) short-run aggregate supply curve will shift up (to the left) .
B) short-run aggregate supply curve will shift down (to the right) .
C) short-run aggregate supply curve will not shift.
D) aggregate demand curve will shift left.

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