In the current period a perceived increase in the real wage, will cause households to:
A)work less.
B)consume more goods.
C)consume more leisure.
D)all of the above.

Question

Quizplus · Accepted Answer

When the real wage increases, households have more purchasing power which means they can buy more goods and services. This would cause them to consume more and not work less or consume more leisure.

In the Current Period a Perceived Increase in the Real