Question

In: Economics

A rise in the equilibrium wage rate will result in what kind of change in the...

A rise in the equilibrium wage rate will result in what kind of change in the AD/AS model?

A) the equilibrium price decreases

B) the aggregate demand curve shifts right

C) the short-run aggregate supply curve shifts right

D) short-run aggregate supply curve shifts left

Solutions

Expert Solution

Ans) the correct option is B) the aggregate demand curve shifts right

When the aggregate demand shifts right but aggregate supply remains constant, the wage rate increases

Rahul Sunny answered 2 years ago
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