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 _______________.

Respuesta :

Answer:

Rises

Explanation:

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 rises.

Labor demand is downward sloping means the demand for labor in the market is less as compared to the supply of labor which is high as compared to its supply so when the demand starts rises faster as compared to the supply then the available labor been less in quantity gets a chance to demand for high wages because of monopoly competition .

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