The basic explanation for high real wages in the United States and other industrially advanced economies is that the
A) labor supply has increased more rapidly than labor demand in these nations.
B) labor demand has increased more rapidly than labor supply in these nations.
C) unemployment in these nations has remained relatively stable over the years.
D) inflation rate in these nations has been higher than the rate of increase in nominal wages.

Question

Quizplus · Accepted Answer

The high real wages in the United States and other industrially advanced economies can be attributed to the fact that labor demand has increased more rapidly than labor supply in these nations. As a result, employers must offer higher wages to attract and retain workers, leading to higher real wages.

The Basic Explanation for High Real Wages in the United