Which one of the following wage-productivity combinations will place the greatest upward pressure on the price level?

Question

Quizplus · Accepted Answer

When nominal wages increase more than productivity, it means that the cost of producing goods and services increases without a corresponding increase in output. This scenario, where nominal wages increase by 4% but productivity only increases by 2%, leads to higher production costs without a proportional increase in output, putting upward pressure on prices.

Which One of the Following Wage-Productivity Combinations Will Place the Greatest