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Suppose That from an Initial Labor Market Equilibrium the Price

Question 65

Multiple Choice

Suppose that from an initial labor market equilibrium the price level suddenly falls.The resulting movement ________ the labor demand curve results in an excess ________ labor,which then puts ________ pressure on the nominal wage to restore labor market equilibrium.


A) up,demand for,upward
B) down,supply of,upward
C) up,supply of,downward
D) down,demand for,upward
E) up,demand for,downward

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