Ricardian equivalence is the proposition that it does not matter whether government expenditure is financed by taxes or by issuing debt.
Indicate whether the statement is true or false
Question 2
If the opportunity cost of working outside the home decreases then it is likely that ________, assuming all else equal.
A) there will be a rightward shift in the labor supply curve
B) there will be an upward movement along the labor supply curve
C) there will be a downward movement along the labor supply curve
D) there will be a leftward shift in the labor supply curve
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