3569EconomicsMedium
If workers get a real wage increase this will likely ____ and ________?
Aencourage the use of more capital increase demand for all inputs
Bencourage the use of less capital reduce demand for all inputs
Cencourage the use of more capital in the long run, reduce demand for all inputs
Correct answer
B. encourage the use of less capital reduce demand for all inputs
Explanation
The correct answer is encourage the use of less capital reduce demand for all inputs.