With respect to labor supply, the substitution effect takes ...

[Tazate]

With respect to labor supply, the substitution effect takes account of the point that at higher wage rates
 
  A) a person can afford to take more leisure.
  B) leisure has become less expensive and so a person consumes less leisure.
  C) there are no factors inducing a person to work less.
  D) leisure has become more expensive and so a person consumes less leisure.

Question 2

How does an increase in real GDP affect the demand for money curve?
 
  What will be an ideal response?

[amanda_14]

Answer to Question 1

D

Answer to Question 2

An increase in real GDP increases the demand for money and shifts the demand curve rightward.

[Tazate]

Thanks for the timely response, appreciate it

[sultana.d]

Gracias!