If the demand for labor ________, real wages rise and the amount of labor employed ________.

Name: If the demand for labor ________, real wages rise and the amount of labor employed ________.
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When the demand for labor increases, firms are willing to pay more for each unit of labor, which leads to an increase in the equilibrium wage rate (real wages). As real wages rise, more workers are willing to supply their labor, which leads to an increase in the amount of labor employed.

If the Demand for Labor ________, Real Wages Rise and the Amount