Multiple Choice
Suppose that wages fall and productivity rises in a particular economy.Ceteris paribus,the aggregate:
A) supply curve will shift leftward, and potential output will remain constant
B) supply curve will shift rightward, and potential output will increase
C) supply curve will shift leftward, and potential output will decrease
D) supply curve will shift rightward, and potential output will remain constant
E) demand curve necessarily shifts rightward
Correct Answer:
Verified
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