Macro- & Monetary Economics

Prio: Normal, Part I: Neoclassical Model, Type: MC

3.) Suppose that the representative consumer's preference change, in that his or her MRS of leisure for consumption increases for any C and I. That implies that

  • Consumption and leisure increase
  • Consumption and leisure decrease
  • Consumption increases and leisure decreases
  • Consumption decreases and leisure increases
Slide 9 & 10

Diskussion