Which one of the following statements regarding the intertemporal substitution hypothesis is false?

A. Labor supply responds to changes in the real wage.
B. Wages and hours of leisure will tend to move together over the course of the life-cycle.
C. Workers are willing reduce labor supplied during a recession.
D. Increases in unemployment may be voluntary as workers collect unemployment insurance benefits.
E. Increases in unemployment may be voluntary as workers trade income for leisure during low-wage periods.

Answer: B