Question: Explain why the wage rate influences only short-run aggregate supply and not potential GDP. In July 2011, average weekly wage rates increased 0.1 percent from

Explain why the wage rate influences only short-run aggregate supply and not potential GDP.
In July 2011, average weekly wage rates increased 0.1 percent from the previous month to $872.70. On a year-over-year basis, average weekly wage rates grew by 2.2 percent. This was the slowest wages growth since January 2010.

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