Refer to Figure 14.2. The income effect of the wage decrease on the amount of hours of leisure is:
A) L0 to L1.
B) L0 to L2.
C) L1 to L2.
D) L2 to L1.
E) none of the above
E
Economics
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In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of an increase in
A) the price level. B) foreign incomes. C) aggregate supply. D) the foreign exchange rate. E) expected future income.
Economics
An increase in the government budget deficit shifts the supply of loanable funds to the left
a. True b. False Indicate whether the statement is true or false
Economics