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Both wages and employment can increase at the same time as long as the:____________

User Mwild
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1 Answer

5 votes

Answer:

supply of labor is lower than the demand

Step-by-step explanation:

Consider for example a country is in need of Doctors, and the number of available doctors is quite low than the demand; such that hospitals wanting to increase their capacity begin to offer higher wages in other to employ available doctors. This evidently will in the short run lead to an increase in wages and employment for new doctors.

User Sdfor
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