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In the Long Run,the Substitution Effect of a Lower Wage

Question 28

Multiple Choice

In the long run,the substitution effect of a lower wage:


A) increases the quantity of labor demanded,while the output effect reduces it
B) decreases the quantity of labor demanded,while the output effect increases it
C) and the output effect both increase the quantity of labor demanded
D) and the output effect both reduce the quantity of labor demanded

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