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If Labour Demand Is Downward Sloping and Labour Supply Is

Question 100

Multiple Choice

If labour demand is downward sloping and labour supply is upward sloping, then when labour demand increases faster than labour supply, what is the effect on real wages?


A) They will stay the same
B) They will increase
C) They will decrease
D) They may increase, decrease, or stay the same depending on the relative slopes.

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