Multiple Choice
People increase their labor supply in response to a temporary increase in government purchases because
A) current or future taxes will increase, making them financially worse off.
B) they need to work more to keep up with their neighbors.
C) interest rates will rise, causing a substitution effect.
D) higher spending today will lead to higher spending in the future, as well.
Correct Answer:
Verified
Correct Answer:
Verified
Q61: Romer and Romer found evidence that money
Q62: According to classical economists,in recessions,not only does
Q63: Given data on capital (K),labor (N),and output
Q64: Suppose the money demand of individuals and
Q65: Classical economists think that the government _
Q67: According to the real business cycle theory,what
Q68: According to real business cycle theory,which of
Q69: According to classical economists,the government should increase
Q70: Classical economists believe that<br>A)money is neutral.<br>B)an increase
Q71: How do RBC economists face the business