Households increase the quantity of labour supplied when
A) the real wage rate rises because the opportunity cost of not working rises.
B) the real wage rate rises because the opportunity cost of not working falls.
C) income tax rises because an increase in income tax increases the demand for labour.
D) the nominal wage rate falls because the opportunity cost of not working rises.
E) the nominal wage rate rises because the real wage rate must also rise.
Correct Answer:
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