The Theory of the Intertemporal Substitution of Leisure

Multiple Choice

The theory of the intertemporal substitution of leisure

A) explains why people work more at some times than at others
B) explains why unemployment is higher in a recession than in a boom
C) states that the elasticity of labor supply in response to temporary wage rate changes is high
D) maintains that people will substitute leisure for work when they are offered lower wages
E) all of the above