Respuesta :
Other things being equal an increase in wages paid to workers in firms making digital devices will cause a wage pull inflation.
Wage push inflation is a system in which there is an overall rise in the cost of goods and services that happens due to rise in wages.
To maintain the level of corporate profits after an increase in wages, employers must also increase the prices which are charged by them for the goods and services they provide.
The overall increase in the cost of goods and services have a circular effect on the wage increase; therefore , as goods and services in the market increase at overall level , higher wages will be needed to be paid for the increased prices of consumer goods.
Companies always increase wages for a number of reasons. The most common reason for making the wages rise is an increase in the minimum wage. The state and federal governments have the power to increase the minimum wage.
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