Intertemporal substitution effects motivate households to:
A) supply more labour when the wage rate is temporarily low.
B) supply more labour when the wage rate is permanently low.
C) supply less labour when the wage rate is temporarily low.
Correct Answer:
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Q45: A higher real wage:
A)increases the income of
Q46: When the labour supply of households is
Q47: Temporary changes in technology, A, conflict with
Q48: A higher interest rate makes:
A)current consumption and
Q49: A higher interest rate makes:
A)current consumption and
Q51: The measure of labour productivity used in
Q52: If there is a positive technological change,
Q53: A higher real wage:
A)makes consumption more expensive.
B)makes
Q54: What is the relationship between real GDP
Q55: A higher interest rate makes:
A)future consumption cheaper.
B)future
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