Research on labor supply generally shows that
A. labor supply rises in response to a permanent increase in the real wage, but falls in response to a temporary increase in the real wage.
B. labor supply rises in response to both a temporary and a permanent increase in the real wage.
C. labor supply rises in response to a temporary increase in the real wage, but falls in response to a permanent increase in the real wage.
D. labor supply falls in response to both a temporary and a permanent increase in the real wage.
Answer: C
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The additional money a business gets from producing and selling one more unit of output is
A. marginal revenue. B. long-term revenue. C. average profit. D. marginal product.
Refer to Figure 17.2. Assume the economy is at point E and is constrained by the PPC shown. This economy
A. Can experience long-run growth by moving to point D. B. Can experience long-run growth by moving to point C. C. Can experience a movement to full employment by moving to point A. D. Cannot experience growth because it is constrained by the PPC.