An increase in the population and hence the supply of labor causes a

Name: An increase in the population and hence the supply of labor causes a
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An increase in the population and hence the supply of labor leads to a surplus of labor at the original real wage rate because more people are available to work than there are jobs available at that wage. This surplus puts downward pressure on wages, causing the real wage rate to fall as employers can choose from more applicants willing to accept lower wages.

An Increase in the Population and Hence the Supply of Labor