Asked by Kameron Teague on Jun 03, 2024
Verified
The basic explanation for high real wages in the United States and other industrially advanced economies is that the
A) labor supply has increased more rapidly than labor demand in these nations.
B) labor demand has increased more rapidly than labor supply in these nations.
C) unemployment in these nations has remained relatively stable over the years.
D) inflation rate in these nations has been higher than the rate of increase in nominal wages.
Real Wages
The buying power of salaries, factoring in inflation, shows the amount of products and services that can be purchased.
Labor Demand
The total quantity of workers that employers want to hire at a given wage rate, reflecting how employment levels vary with changes in wage or the economic output.
- Comprehend the influence of labor productivity on actual income and the progression of wages.
Verified Answer
MH
Milan HernándezJun 03, 2024
Final Answer :
B
Explanation :
The primary reason for high real wages in industrially advanced economies like the United States is that labor demand has increased more rapidly than labor supply. This is largely due to technological advancements and higher productivity, which increase the demand for skilled labor, pushing wages up.
Learning Objectives
- Comprehend the influence of labor productivity on actual income and the progression of wages.
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