In the labor supply model $L ^ { s } = \frac { \bar { \ell } w } { c }$ , we can think of ________ as ________.
A) $1 - \bar { \ell }$ the total labor pool
B) $\frac { 1 } { c } ;$ inflation
C) $1 - \bar { \ell };$ equal to sticky wages
D) $\bar { \ell };$ leisure
E) $w$; reflecting sticky prices

Question

Quizplus · Accepted Answer

In the labor supply model, $\bar{\ell}$ represents the amount of leisure time, as it is the total time available minus the labor supplied.

In the Labor Supply Model Ls=ℓˉwcL ^ { s } = \frac { \bar { \ell } w } { c }Ls=cℓˉw​

In the Labor Supply Model $L ^ { s } = \frac { \bar { \ell } w } { c }$