As long as wage increases do not exceed labor productivity growth rates,a stable price level should be the result.

If wages increase at the same rate as labor productivity, it means that workers are producing more and earning more, but prices do not necessarily need to rise as a result. This is because the increased production can meet the increased demand without creating inflationary pressure. However, if wages grow faster than productivity, it can lead to cost push inflation as businesses raise prices to cover the increased labor costs, causing a rise in the overall price level.