Macro- & Monetary Economics

Prio: Normal, Part II: Keynes, Type: MC, Quiz 2

In the neoclassical model, suppose that the intertemporal substitution effect of leisure decreases, i.e. labor supply becomes less responsive to the real interest rate. This implies that the output supply curve
 

  • becomes steeper
     
  • becomes flatter
  • shifts to the right
  • shifts to the left
     
 

Diskussion