Suppose new electronic devices make it easier to monitor the effort levels of workers. If some shirking is still possible in the efficiency wage model, what happens to the level of employment?

In the United States, the debt burden tends to rise during ________ and fall during ________

A) wartime, but only if the war is of short duration; peacetime B) peacetime; wartime, but only if the war lasts several years. C) peacetime; wartime D) wartime; peacetime

The substitution effect

A) is always larger than the price effect. B) always decreases purchases of a good as the price of a good rises. C) increases purchases of the good as the price rises if the good is a normal good. D) is always smaller than the income effect.