Author Question: The classical labor supply function is shown as a. Ns = g(P/W). b. Ns = g(W/P). c. Ns = ... (Read 45 times)

Collmarie · **on:** Jun 30, 2018

The classical labor supply function is shown as

a. Ns = g(P/W).
b. Ns = g(W/P).
c. Ns = t(W/Pe).
d. Ns = t(Pe/W).

Question 2

In the Keynesian view, a reduction in the marginal income tax rate would cause

a. output to rise and the price level to fall.
b. both output and the price level to rise.
c. output to rise with the price level unchanged.
d. the price level to rise with output unchanged.