JAMB - Economics (2013 - No. 43)
A valid explanation for real wage growth is
an increase in the rate of productivity
the rising cost of capital accumulation
a contraction of emploment in service industries
an increase in the quantity of labour
Explicació
Real wage growth is largely due to increased in economic activity creating competition between businesses to attract and retain workers. The higher the rate of economic activities (production, buying and selling) in the economy, the higher the real wage growth.