If real wages fall as output rises,then in the classical model it must be the case that
A)labor demand rose.
B)labor demand fell.
C)labor supply rose.
D)labor supply fell.
E)none of the above.

Question

Quizplus · Accepted Answer

In the classical model, if real wages fall as output rises, it typically indicates that labor supply rose. This is because an increase in labor supply, with all else being equal, would lead to a decrease in real wages due to the surplus of labor available.

If Real Wages Fall as Output Rises,then in the Classical