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Households Increase the Quantity of Labor Supplied When the

Question 55

Multiple Choice

Households increase the quantity of labor supplied when the


A) income tax rises because an increase in the income tax increases the demand for labor.
B) nominal wage rate falls because the opportunity cost of not working rises.
C) nominal wage rate rises because the real wage rate must also rise.
D) real wage rate rises because the opportunity cost of not working falls.
E) real wage rate rises because the opportunity cost of not working rises.

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