Author Question: Assuming a worker's money wage rose from 10 per hour to 20 per hour while all product price have ... (Read 185 times)

sarasara · **on:** Jun 30, 2018

Assuming a worker's money wage rose from 10 per hour to 20 per hour while all product price have doubled, then in the classical model, this worker would

a. supply more labor after the wage increase.
b. supply less labor after the wage change.
c. supply the same amount of labor after the hourly wage increase.
d. demand less leisure.

Question 2

What could result in an increase of consumption demand and a decrease in labor supply?

A) a drop in current taxes
B) an increase in future taxes
C) a decrease in total factor productivity
D) an increase in government expenses