What is the income effect for leisure demand?
What will be an ideal response?
The change in leisure time resulting from a change in real income caused by a change in the wage rate. A higher wage increases the demand for all normal goods.
Economics
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One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
Economics
According to the above table, a surplus exists when
A. the price is $1 per unit. B. the price is $2 per unit. C. the price is $3 per unit. D. the price is greater than $3 per unit.
Economics