If the wealth effect of an increase in the real wage was greater than the substitution effect of an increase in the real wage
a. the labor supply curve would slope upward.
b. the labor supply curve would slope downward.
c. the labor supply curve would be vertical.
d. the labor demand curve would solely determine the real wage.
Question 2
A decrease in the price level, holding the nominal money supply constant, will shift the LM curve
a. upward and to the right.
b. downward and to the left.
c. downward and to the right.
d. upward and to the left.
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