Explain why the wage rate influences only short-run aggregate supply and not potential GDP. In July 2011,
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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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A rise in the money wage rate decreases shortrun aggregate supply because i...View the full answer
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Related Book For 
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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