If wages increase 4% faster than productivity,then inflation will be 3% higher,because wages account for ³/₄ of the total costs for a firm.

Name: If wages increase 4% faster than productivity,then inflation will be 3% higher,because wages account for 3 / 4 of the total costs for a firm.
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Question

Quizplus · Accepted Answer

The relationship between wages, productivity, and inflation is not directly proportional or linear. Other factors also influence inflation, and the given scenario oversimplifies the complex dynamics involved.

If Wages Increase 4% Faster Than Productivity,then Inflation Will Be