Which of the following is a valid explanation for real wage growth?
A) the rising cost of capital accumulation
B) a contraction of employment in manufacturing industries
C) an increase in the quantity of labor
D) a rising rate of labor productivity growth

Question

Quizplus · Accepted Answer

A rising rate of labor productivity growth can lead to an increase in real wage growth as workers are able to produce more output in the same amount of time, resulting in higher wages. A, B, and C are not valid explanations for real wage growth.

Which of the Following Is a Valid Explanation for Real