If the money wage rate rises,
A)the AS curve shifts rightward.
B)there is a movement up along the AS curve.
C)the AS curve shifts leftward.
D)there is a movement down along the AS curve.
E)there is neither a movement along or a shift in the AS curve.

Question

Quizplus · Accepted Answer

An increase in the money wage rate raises production costs, leading to a decrease in aggregate supply, which shifts the AS curve leftward.

If the Money Wage Rate Rises