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An Increase in the Population and Hence the Supply of Labor

Question 133

Multiple Choice

An increase in the population and hence the supply of labor causes a


A) surplus of labor at the original real wage rate and the real wage rate will fall.
B) shortage of labor at the original real wage rate and the real wage rate will rise.
C) surplus of labor at the original real wage rate and the real wage rate will rise.
D) shortage of labor at the original real wage rate and the real wage rate will fall.

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