In 2023, an article in the Wall Street Journal noted that “many employers say they had to raise wages last year to recruit and hold on to restaurant servers, hotel housekeepers, and retail store clerks.”

a. Was the fact that firms had to raise wages for people in those jobs better news for lower-income workers or higher-income workers? Briefly explain.

b. Can we be certain whether during 2022 the purchasing power of the wages people in these jobs received will increase? Briefly explain.