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Advanced Placement (AP)Advanced Placement (AP)
4 August, 15:21

Describe how productivity affects wages.

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  1. 4 August, 15:44
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    Economic theory states that the wage a worker earns equals the amount of output the worker can produce. If the wage were above productivity, firms would find it profitable to shed labor, resulting in downward pressure on wages and upward pressure on productivity.
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