Research on Labor Supply Generally Shows That

Multiple Choice

Research on labor supply generally shows that

A) labor supply rises in response to a permanent increase in the real wage, but falls in response to a temporary increase in the real wage.
B) labor supply rises in response to a temporary increase in the real wage, but falls in response to a permanent increase in the real wage.
C) labor supply rises in response to both a temporary and a permanent increase in the real wage.
D) labor supply falls in response to both a temporary and a permanent increase in the real wage.