In the late 1990s, the U.S. economy consistently saw increasing wages and increasing worker productivity.
A. If wages rise, how does aggregate supply change?
B. If productivity rises, how does aggregate supply change?
C. Can you determine the net effect of increases in both workers' wages and workers' productivity? How could you look at the economy and determine which (if either) of the two effects dominates the other, ceteris paribus?