The real wage will increase if:
A) the supply of labor increases.
B) the productivity of labor increases.
C) the price of output increases.
D) the supply of capital decreases.

Question

Quizplus · Accepted Answer

An increase in labor productivity leads to an increase in output per worker, allowing firms to pay higher wages without raising the price of the final product. This results in an increase in real wages.

The Real Wage Will Increase If