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pogonyaev
3 years ago
15

What causes a wage-price spiral, and how does it affect the economy?

History
2 answers:
kotegsom [21]3 years ago
7 0
A wage-price spiral is caused by the effect of supply and demand on aggregate prices. ... The rise in aggregate demand and the increased wage burden causes businesses to increase the prices of products and services. Although wages are higher the increase in prices causes workers to demand even higher salaries.
n200080 [17]3 years ago
5 0

Answer:

A wage-price spiral is caused by the effect of supply and demand on aggregate prices. The rise in aggregate demand and the increased wage burden causes businesses to increase the prices of products and services. Although wages are higher the increase in prices causes workers to demand even higher salaries.

Explanation:

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