Earnings Growth Slows In July 2011, average weekly wage rates increased 0.1 percent from the previous month to $872 70 On a yoar ovei-year basis, average wookly wage rates grew by 22 percent. This was the slowest wages growth since January 2010 Source The Daly Statistics Canada September 29 201 Explan why the wage rate influences only short run aggregate supply and not potential GOP Achange in the money wage rate does not change long-run aggregate supply because O A potential GDP is constant OB. a change in the money wage rate has no effect on the real wage rate, everything else remanng the same C. a change in the money wage rate changes firms' costs in the short run but not in the long run
Earnings Growth Slows In July 2011, average weekly wage rates increased 0.1 percent from the previous month to $872 70 On a yoar ovei-year basis, average wookly wage rates grew by 22 percent. This was the slowest wages growth since January 2010 Source The Daly Statistics Canada September 29 201 Explan why the wage rate influences only short run aggregate supply and not potential GOP Achange in the money wage rate does not change long-run aggregate supply because O A potential GDP is constant OB. a change in the money wage rate has no effect on the real wage rate, everything else remanng the same C. a change in the money wage rate changes firms' costs in the short run but not in the long run
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Earnings Growth Slows
In July 2011, average weekly wage rates increased 0.1 percent from the previous month to $872 70 On a yoar ovei-yoar basis, average weekly wage rates grow by 22
percent This was the slowest wages growth since January 2010
Source: The Daily Statistics Canada, September 29,2011
Explain why the wage rate influences only short-run aggregate supply and not potential GDP
A change in the money wage rate does not change long-run aggregato supply because
OA. potential GDP is constant
OB. a change in the money wage rate has no effect on the real wage rate, everything else remaining the same
OC. a change in the money wage rate changes firms' costs in the short run but not in the long run
OD. on the LAS curve, the change in the money wage rate is accompanied by an equal percentage change in the price level](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fece8bba9-7252-492c-9a70-c27049c54082%2F2b9e464f-323f-4d6b-b094-b2bd87934747%2F7qabm8d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Earnings Growth Slows
In July 2011, average weekly wage rates increased 0.1 percent from the previous month to $872 70 On a yoar ovei-yoar basis, average weekly wage rates grow by 22
percent This was the slowest wages growth since January 2010
Source: The Daily Statistics Canada, September 29,2011
Explain why the wage rate influences only short-run aggregate supply and not potential GDP
A change in the money wage rate does not change long-run aggregato supply because
OA. potential GDP is constant
OB. a change in the money wage rate has no effect on the real wage rate, everything else remaining the same
OC. a change in the money wage rate changes firms' costs in the short run but not in the long run
OD. on the LAS curve, the change in the money wage rate is accompanied by an equal percentage change in the price level
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