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Suppose the Marginal Product of Labor (MPL)is Greater Than the Real

Question 16

Multiple Choice

Suppose the marginal product of labor (MPL) is greater than the real wage.If the real wage remains constant,then we should expect ________.


A) an increase in employment and decrease in the MPL
B) an increase in the supply of labor and decrease in the MPL
C) an increase in leisure and no change in the MPL
D) an increase in the supply of labor and no change in the MPL

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