In order for real wages to grow

Name: In order for real wages to grow
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Real wages can only grow if productivity increases, meaning that workers are able to produce more goods or services per hour worked. This allows employers to pay higher wages without increasing the cost of production, and thus, keeps prices stable. Simply increasing money wages without a corresponding increase in productivity would only lead to inflation, which would ultimately negate the increase in nominal wages.

In Order for Real Wages to Grow