Suppose that households wealth increase because the value, Business Economics

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Suppose that households wealth increase because the value

Suppose that households wealth increase because the value of their assists (homes, stocks, land, etc.) have increased. As a result of this shock our model of the labor market predicts that

A. the equilibrium real wage will rise B. the equilibrium real wage may fall, rise, or stay the same C. equilibrium employment will rise D. equilibrium employment may fall, rise, or stay the same

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