An Increase in G or G' Shifts the Output Supply

Multiple Choice

An increase in G or G' shifts the output supply curve to the right because

A) lifetime wealth increases, a positive income effect that shifts labour supply to the right.
B) lifetime wealth decreases, a negative income effect that shifts labour supply to the left.
C) lifetime wealth decreases, a negative income effect that shifts labour supply to the right.
D) the increase in the real interest rate shifts output supply.
E) the decrease in the real interest rate shifts output supply.