Q
If workers get a real wage increase this will likely ____ and _____?
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A
A. Encourage the use of more capital in the long run, reduce demand for all inputs
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B
B. Encourage the use of more capital increase demand for all inputs
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C
C. Encourage the use of less capital reduce demand for all inputs
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D
D. Encourage the use of less capital, reduce demand for all inputs
Correct Answer:
C. C. Encourage the use of less capital reduce demand for all inputs
