Author Question: Describe the factors that could cause an increase in the wage rate of ... (Read 8 times)

abern · **on:** Jun 30, 2018

Describe the factors that could cause an increase in the wage rate of workers.

Question 2

The supply-side effect of higher tax rates would include a fall in the economy's potential GDP.
a. True
b. False
Indicate whether the statement is true or false

tofugiraffe · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Anything that increases the demand or reduces the supply of labor will result in an increase in the wage for those workers employed. Increases in the demand for labor could be caused by an increase in the price of the product produced, and increase in technology or anything else that increases the productivity of workers. A decrease in the supply of labor could be accomplished by unionizing.

Answer to Question 2

True