If labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, it is expected that real wages _______.

Question

Quizplus · Accepted Answer

When labor demand rises faster than labor supply, it creates a higher demand for workers than the supply available, leading to an increase in real wages as employers are willing to pay more to attract the necessary labor.

If Labor Demand Is Downward Sloping and Labor Supply Is