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If Energy and Unskilled Labor Are Gross Complements,an Increase in the Price

Question 33

Multiple Choice

If energy and unskilled labor are gross complements,an increase in the price of energy will:


A) increase the supply of unskilled labor,decreasing the unskilled wage
B) increase the demand for unskilled labor,raising the unskilled wage
C) decrease the demand for unskilled labor,decreasing the unskilled wage
D) either increase or decrease the demand for unskilled labor,depending on the relative strengths of the output effect and the substitution effect

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