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If Wages Rise Faster Than Increases in Labour Productivity,then Unit

Question 59

Multiple Choice

If wages rise faster than increases in labour productivity,then unit labour costs will


A) fall and the AS curve will shift left.
B) fall and the AS curve will shift right.
C) rise and the AS curve will shift left.
D) rise and the AS curve will shift right.
E) not change because only total labour costs change.

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