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For This Question,assume That the Economy Is Initially Operating at the Natural

Question 19

Multiple Choice

For this question,assume that the economy is initially operating at the natural level of output.An increase in unemployment benefits will cause


A) an increase in the real wage in the medium run.
B) a reduction in the real wage in the medium run.
C) no change in the real wage in the medium run.
D) ambiguous effects on the real wage in the medium run.

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