"Intertemporal substitution" in labour supply describes changes in labour supply in response to changes in
A)the real interest rate.
B)investment spending.
C)personal tax rates.
D)consumer demand for goods.

Question

Quizplus · Accepted Answer

Intertemporal substitution in labor supply refers to the idea that individuals may choose to work more or less at different times based on changes in the real interest rate, which affects the relative value of current versus future consumption.

"Intertemporal Substitution" in Labour Supply Describes Changes in Labour Supply