According to real business cycle theory, a likely cause of an increase in employment is ________

Because of the income effect, the labor supply curve is

A) eventually backward bending as wage rate increases. B) positively sloped. C) horizontal. D) vertical.

If property rights are not well enforced, all of the following are likely to occur except

A) a significant number of people will be willing to risk their funds by investing them in local businesses. B) economic efficiency will be reduced. C) an economy will produce inside its production possibilities frontier. D) fewer goods and services will be produced.