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If wages rise, ceterus paribus, Question 5 options: the participation rate will rise as wages now exceed more people's reservation wage. reservation wages will rise
If wages rise, ceterus paribus, Question 5 options: the participation rate will rise as wages now exceed more people's reservation wage. reservation wages will rise as more people enter the labour force. the opportunity cost of leisure falls in the short run. the total work hours in the economy will increase if the sum of the income effects is larger than the sum of the substitution effects
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