Multiple Choice

An economic historian observes that in a pre-industrial agrarian society, the real wage index was at a value of 62 in the year 1305. Following a major plague in the mid-14th century that drastically reduced the population, wages rose significantly for over a century. However, by the year 1605, the wage index had returned to 62. Which of the following statements provides the best explanation for the return of wages to their earlier level?

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Updated 2025-08-11

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