Figure 7.1 -Refer to Figure 7.1. Start from Initial Equilibrium. If Firms

Multiple Choice

Figure 7.1

-Refer to Figure 7.1. Start from initial equilibrium. If firms increase their capital stock, the new real wage could be ________ and the new amount of labor employed could be ________.

A) Z; A
B) Z; C
C) X; A
D) X; C