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Why Is a Rightward Shift of the Labor Supply Curve

Question 79

Multiple Choice

Why is a rightward shift of the labor supply curve difficult to rationalize in the classical model?


A) The labor supply curve is based on firms' preferences.
B) Labor supply is very difficult to measure.
C) The labor supply curve is almost never a known entity.
D) Workers' preferences and therefore labor supply tend to change very slowly.
E) Workers' preferences and therefore labor supply tend to change very quickly.

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