An increase in lifetime wealth
A) shifts the current labour supply curve to the left.
B) shifts the current labour supply curve to the right.
C) reduces the real wage.
D) increases labour supply.
E) reduces savings.

Question

Quizplus · Accepted Answer

An increase in lifetime wealth typically leads individuals to work less, as they can maintain their desired standard of living with less income from labor, thus shifting the current labor supply curve to the left.

An Increase in Lifetime Wealth