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If,as Market-Clearing Theories of the Labour Market Suggest,all Labour Markets

Question 22

Multiple Choice

If,as market-clearing theories of the labour market suggest,all labour markets had perfectly flexible wages,real wages would rise when labour demand


A) rises and fall when labour supply rises.
B) rises and fall when labour supply falls.
C) falls and rise when labour supply falls.
D) rises and rise when labour supply rises.
E) falls and falls when labour supply rises.

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