The classical economists believed that a. labor supply is ...

[EAugust]

The classical economists believed that
 
  a. labor supply is upward sloping because the income effect is greater than the substitution effect.
  b. labor supply is upward sloping because the substitution effect is greater than the income effect.
  c. labor supply is downward sloping because the income effect is greater than the substitution effect.
  d. in equilibrium, the marginal product of labor must exceed the real wage.
  e. both b and d.

Question 2

With increases in inflation demand for money that does not earn a return decreases. Carrying less cash in our pockets means higher ________.
 
  A) shoe-leather costs
  B) menu costs
  C) capital gain tax bills
  D) all of the above
  E) none of the above

[cascooper22]

Answer to Question 1

B

Answer to Question 2

A

[EAugust]

Thank you

[cascooper22]

Happy to help you