A surplus of labour is eliminated by ________ in the real wage rate and a shortage of labour is eliminated by ________ in the real wage rate.
A) a decrease; an increase
B) a decrease; a decrease
C) an increase; a decrease
D) an increase; an increase
E) None of the above answers is correct because shortages and surpluses are eliminated by changes in the demand for labour and the supply of labour, not the wage rate.
Correct Answer:
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A)
