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Asked by Jason Fraser on Jun 06, 2024

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An increase in wage rate,other things constant,shifts the aggregate supply curve downward.

Wage Rate

The standard amount of pay given for work performed, typically expressed as an hourly, daily, or piecework rate.

Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level in an economy and the total output of goods and services produced by that economy, assuming constants elsewhere.

Downward Shift

In economics, refers to a decline in the position of a demand or supply curve on a graph, indicating a decrease in quantity demanded or supplied at any given price.

  • Investigate the effects that monetary and fiscal actions have on inflationary trends, unemployment statistics, and the overall economic framework.
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Daniela Alanis De LeonJun 09, 2024
Final Answer :
False
Explanation :
An increase in wage rates, with other factors held constant, typically increases the cost of production for businesses, which reduces the quantity of goods and services supplied at any given price level. This would shift the aggregate supply curve to the left, not downward.

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