Consider the basic AD/AS model. When wage rates rise faster than the increase in labour productivity, theOA AD curve shifts left.OB. AS curve shifts upward.OC. output gap falls.OD. AS curve shifts downward.OE output gap increases.

Labor productivity refers to the measure of output produced per unit of labor input, typically…

Consider the basic AD/AS model. When wage rates rise faster than the increase in labour productivity, the A. AD curve shifts left. OB. AS curve shifts upward. OC. output gap falls. OD. AS curve shifts downward. OE output gap increases.

Consider the basic AD/AS model. When wage rates rise faster than the increase in labour productivity, the A. AD curve shifts left. OB. AS curve shifts upward. OC. output gap falls. OD. AS curve shifts downward. OE output gap increases.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 29CTQ: How is the concept of technology, as defined with the aggregate production function, different from...

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Question

Consider the basic AD/AS model. When wage rates rise faster than the increase in labour productivity, the
OA AD curve shifts left.
OB. AS curve shifts upward.
OC. output gap falls.
OD. AS curve shifts downward.
OE output gap increases.

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