If a neoclassical model shows increasingwages growing faster than productivity inthe economy over the long run, what elsewill likely occur?inflationary increase in price levelsubstantial short-term off-setting decrease inoutputchange in government policy to decrease inaggregate demandshort-run decrease in cyclical unemployment

The neoclassical theory of wages predicts that wages will rise when the demand for labor is greater…

Answered: If a neoclassical model shows…

If a neoclassical model shows increasing wages growing faster than productivity in the economy over the long run, what else will likely occur? inflationary increase in price level

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

If a neoclassical model shows increasing
wages growing faster than productivity in
the economy over the long run, what else
will likely occur?
inflationary increase in price level
substantial short-term off-setting decrease in
output
change in government policy to decrease in
aggregate demand
short-run decrease in cyclical unemployment

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