An increase in lifetime wealth is likely to
A) increase current labour supply and increase current consumption demand.
B) increase current labour supply and decrease current consumption demand.
C) decrease current labour supply and increase current leisure.
D) decrease current labour supply and decrease current consumption demand.
E) decrease current labour supply and decrease current leisure.

Question

Quizplus · Accepted Answer

An increase in lifetime wealth typically allows individuals to afford more leisure, reducing the need to supply labor, while increasing their ability to consume more goods and services.

An Increase in Lifetime Wealth Is Likely to