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    Principles of Macroeconomics Study Set 11
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    Exam 16: Household and Firm Behavior in the Macroeconomy: a Further Look
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    Draw a Graph of Labor Supply in Which the Substitution
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Draw a Graph of Labor Supply in Which the Substitution

Question 1

Question 1

Essay

Draw a graph of labor supply in which the substitution effect dominates at low wages and the income effect eventually dominates at higher wages.

Correct Answer:

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