Increase in average wages does NOT lead to long-run economic growth.
When there is an increase in the marketing value of the goods and services that are produced by an economy then this refers to the Long run Economic Growth. It is the measure of the percentage rate of change in the Gross Domestic Product of a nation.
GDP affects the Long run economic growth. Some of the things that affect the Long run growth of Economy include Increase in working population, labour productivity and capital. Thus, increase in the average wages will not lead to the long run economic growth.
