If 1 - b = WN/PY where W is the nominal wage rate,N is the quantity of labor input,and PY is total income in nominal terms,then labor's share of national income grows if A)(w - p) (y - n). B)(w - p) (y - p). D)(w - n)

Question

If 1 - b = WN/PY where W is the nominal wage rate,N is the quantity of labor input,and PY is total income in nominal terms,then labor's share of national income grows if A)(w - p)> (y - n). B)(w - p)< (y - n). C)(w - n)> (y - p). D)(w - n)< (y - p).

Quizplus · Accepted Answer

Labor's share of national income grows if the real wage growth (w - p) is greater than the growth in labor productivity (y - n).

If 1 - B = WN/PY Where W Is the Nominal