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When Wages Increase,the Substitution Effect Implies That Employment Will ________

question 8

Multiple Choice

When wages increase,the substitution effect implies that employment will ________ and the scale effect implies that employment will ________.


Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Dividends

A portion of a company's earnings distributed to shareholders as a reward for their investment.

Par Common Stock

The face value of common shares issued by a company, which is noted on the share certificate.

No-Par Common Stock

Shares of common stock issued without a par value, which means they are not assigned a nominal face value.

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