A decrease in the supply of labor will ________ real wages and ________ employment.

Name: A decrease in the supply of labor will ________ real wages and ________ employment.
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A decrease in the supply of labor typically leads to an increase in real wages because employers must pay more to attract the limited number of workers. However, the higher wages can lead to a decrease in employment as employers may hire fewer workers due to the higher cost.

A Decrease in the Supply of Labor Will ________ Real