Question

According to Samulson, the wages can be increased by following actions Answer

A. Reducing exploitation
B. Increasing Marginal productivity
c. Restricting labour supply
d all of the above​

Answer 1

Factor for increase in wages

Explanation:

• According to the wage-price spiral, growing salaries increase disposable income, which increases demand for goods and drives up prices.
• In a conceptual spiral, rising prices lead to increased demand for higher pay, which leads to higher production costs and increased pricing pressure.
• The wage-price spiral is a concept used in economics to describe the phenomena of rising prices as a result of rising earnings.
• When workers earn a raise in pay, they demand more goods and services, which drives up costs. The salary increase essentially raises general business expenses, which are then passed on to consumers as higher pricing. It's practically a never-ending cycle of continual price hikes.
• The wage-price spiral is a key feature of Keynesian economic theory since it illustrates the causes and effects of inflation.
• The "cost-push" cause of inflation is sometimes referred to as such. Another origin of inflation is "demand-pull" inflation, which monetary theorists believe begins with the money supply.
• People who earn more than the cost of living choose a savings and consumer spending allocation mix. As a consumer's income rises, so does his or her willingness to save and spend.