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In a Labor Market Without an Efficiency Wage, Minimum Wage

Question 80

Multiple Choice

In a labor market without an efficiency wage, minimum wage, or union wage, when the real wage rate exceeds the equilibrium real wage rate, there is a ------------- of labor and the real wage rate will-------------
.


A) surplus; rise
B) shortage; fall
C) surplus; not change because only efficiency wages or union wages can change.
D) shortage; rise
E) surplus; fall

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