how did higher wages lead to the purchase of more consumer goods
Answers
Explanation:
Mass production enabled manufacturers to produce goods at a faster pace, distribute those goods more widely, and therefore increase ...
Consumers have more extra income to spend while earnings are steadily rising.
The degree of employment is one of the most important elements determining consumer demand. The more people who have a consistent income and anticipate to have one in the future, the more people will spend their money on discretionary items. As a result, the monthly unemployment rate report is a leading economic indicator that provides insight into consumer demand.
Consumer spending is also influenced by wage levels. Consumers have more discretionary income to spend while earnings are steadily rising. Optional consumer goods demand is likely to diminish if earnings remain flat or fall. One of the strongest indications of the state of salaries for American employees is median income.