
In response to an increase in total factor productivity
A) both the substitution effect and the income effect suggest that hours worked should increase.
B) the substitution effect suggests that hours worked should increase, while the income effect suggests that hours worked should decrease.
C) the substitution effect suggests that hours worked should decrease, while the income effect suggests that hours worked should increase.
D) both the substitution effect and the income effect suggest that hours worked should decrease.
Correct Answer:
Verified
Q45: An increase in total factor productivity
A) increases
Q46: At the competitive equilibrium with a positive
Q47: Changes in total factor productivity are plausible
Q48: An increase in government spending
A) increases consumption
Q49: An increase in government spending shifts the
Q51: An increase in government spending
A) increases consumption,
Q52: Which feature of the business cycle does
Q53: Changes in government spending are not likely
Q54: Proportional income taxation is distorting because
A) people
Q55: A one-unit increase in government expenditures should,according
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