If the supply of labor ________, real wages fall and the amount of labor employed ________.

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When the supply of labor increases, there is more labor available than before. This typically leads to a decrease in real wages because employers have more potential workers to choose from, so they don't have to offer as high wages to attract employees. Despite the fall in wages, the amount of labor employed usually increases because lower wages can make it more affordable for employers to hire more workers.

If the Supply of Labor ________, Real Wages Fall and the Amount