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The Quantity of Labor Supplied Increases as the Real Wage

Question 303

Multiple Choice

The quantity of labor supplied increases as the real wage rises because


A) higher real wages mean that nominal wages have increased.
B) the opportunity cost of working increases.
C) the quantity of labor demanded increases.
D) the opportunity cost of leisure rises.
E) labor force participation decreases so that only serious workers are left in the labor force.

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