A general decrease in wages will result primarily in the _____ curve shifting to the _____.
A) aggregate demand; right
B) aggregate demand; left
C) short-run aggregate supply; right
D) short-run aggregate supply; left

Question

Quizplus · Accepted Answer

A decrease in wages reduces production costs, leading to an increase in short-run aggregate supply, shifting the curve to the right.

A General Decrease in Wages Will Result Primarily in the _____