A fall in labor costs will cause aggregate:
A) Supply to increase
B) Demand to increase
C) Supply to decrease
D) Demand to decrease

Question

Quizplus · Accepted Answer

A fall in labor costs will lower the production costs for firms, leading to an increase in the overall supply of goods and services. This is because lower labor costs will incentivize firms to produce more goods and services, which will increase the overall quantity of supply.

A Fall in Labor Costs Will Cause Aggregate