Which of the following best explains how employment can increase at the same time as the real wage is decreasing?
A) The labor supply and demand curves both shift to the right; however, the shift in the labor demand curve is greater than the shift in the labor supply curve.
B) The labor supply and demand curves both shift to the left; however, the shift in the labor supply curve is greater than the shift in the labor demand curve.
C) A rightward shift of the labor demand curve and a movement along the labor supply curve occur.
D) The labor supply and demand curves both shift to the right; however, the shift in the labor supply curve is greater than the shift in the labor demand curve.
E) The labor supply and demand curves both shift to the left; however, the shift in the labor demand curve is greater than the shift in the labor supply curve.
Correct Answer:
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