The money wage rate has little effect on the supply curve.It mainly affects the aggregate demand curve.

Question

Quizplus · Accepted Answer

The money wage rate has a direct effect on the cost of production for firms, which would affect their supply decisions. An increase in wage rate would increase the cost of production, leading to a decrease in supply. This would shift the supply curve to the left. However, it can also indirectly affect the aggregate demand curve by influencing consumer income and consumption behavior.

The Money Wage Rate Has Little Effect on the Supply