Multiple Choice
What are the effects of EI system on labour supply, based on the income-leisure choice model?
A) More-generous EI will decrease labour force participation but increase weeks worked.
B) More-generous EI will increase labour force participation and increase weeks worked.
C) More-generous EI will decrease labour force participation and decrease weeks worked.
D) More-generous EI will increase labour force participation but the effect on weeks worked is ambiguous.
E) More-generous EI will increase labour force participation but decrease weeks worked.
Correct Answer:
Verified
Correct Answer:
Verified
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