As the price level rises,real wage ____________and people choose to work ___________.

Name: As the price level rises,real wage ____________and people choose to work ___________.
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As the price level rises, the purchasing power of a person's income falls. This means that the real wage (the purchasing power of a person's income) falls. As a result, people will choose to work less, as the reward for working (real wage) has decreased. This is known as the "income effect" of a price level increase.

As the Price Level Rises,real Wage ____________And People Choose to Work