A decrease in the nominal wage will cause the aggregate supply curve to
A)shift outward..
B)shift inward.
C)become flatter
D)become steeper..

Question

Quizplus · Accepted Answer

A decrease in the nominal wage reduces the cost of production for firms, leading to an increase in the quantity of goods and services supplied at every price level. This is represented by an outward (or rightward) shift in the aggregate supply curve.

A Decrease in the Nominal Wage Will Cause the Aggregate