Refer to the information above. Which of the following equals the annual growth rate of "effective labor" in the steady state in this economy?

Compared to high school graduates, what is likely to happen to employment and wages for college graduates during a recession?

What will be an ideal response?

Which of the following is true concerning the income effect of a decrease in price?

A) It will lead to an increase in consumption only for a normal good. B) It always will lead to an increase in consumption. C) It will lead to an increase in consumption only for an inferior good. D) It will lead to an increase in consumption only for a Giffen good.