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18. Europe has become more economically integrated over the past few decades and its economists have been interested in how this has impacted wages. As one example, Germany gave many Czech workers who live near the border work permits so they could apply for jobs in Germany. What does our model predict this did to wages and labor hired in Germany? a. w 1, L ↑ b. w 1, L I C. w ↑, L ↑ d. w ↑, L I

18. Europe has become more economically integrated over the past few decades and its economists have been interested in how this has impacted wages. As one example, Germany gave many Czech workers who live near the border work permits so they could apply for jobs in Germany. What does our model predict this did to wages and labor hired in Germany? a. w 1, L ↑ b. w 1, L I C. w ↑, L ↑ d. w ↑, L I

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter16: Gaining From International Trade
Section: Chapter Questions
Problem 3CQ
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**Question 18: Impact of Economic Integration on Wages and Labor in Germany** Europe has become more economically integrated over the past few decades, prompting economists to investigate its effects on wages. For instance, Germany issued work permits to many Czech workers living near the border, allowing them to seek employment in Germany. Based on our model, what is the predicted effect on wages (\(w\)) and labor hired (\(L\)) in Germany? Options: a. \(w \downarrow, L \uparrow\) b. \(w \downarrow, L \downarrow\) c. \(w \uparrow, L \uparrow\) d. \(w \uparrow, L \downarrow\)
Transcribed Image Text:**Question 18: Impact of Economic Integration on Wages and Labor in Germany** Europe has become more economically integrated over the past few decades, prompting economists to investigate its effects on wages. For instance, Germany issued work permits to many Czech workers living near the border, allowing them to seek employment in Germany. Based on our model, what is the predicted effect on wages (\(w\)) and labor hired (\(L\)) in Germany? Options: a. \(w \downarrow, L \uparrow\) b. \(w \downarrow, L \downarrow\) c. \(w \uparrow, L \uparrow\) d. \(w \uparrow, L \downarrow\)
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