Real wages increased in industrialized countries in the twentieth century because the demand for labor:
A)increased more rapidly than the supply of labor increased.
B)increased more slowly than the supply of labor increased.
C)increased, while the supply of labor decreased.
D)decreased, while the supply of labor increased.

Question

Quizplus · Accepted Answer

Labor markets follow the same principles as goods and services markets: when both supply and demand rise at the same time, it is certain that quantity will increase but uncertain whether price will rise or fall. When wages rose in this case, the demand shift was greater than the supply shift.

Real Wages Increased in Industrialized Countries in the Twentieth Century