An increase in the supply of labor will ________ real wages and ________ employment.

Name: An increase in the supply of labor will ________ real wages and ________ employment.
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An increase in the supply of labor will lead to a decrease in wages due to the higher competition among workers for jobs, causing employers to offer lower wages. However, with lower wage costs, employers will be able to hire more people to work for them, leading to an increase in employment.

An Increase in the Supply of Labor Will ________ Real