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    Principles of Macroeconomics Study Set 12
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    Exam 15: Household and Firm Behavior in the Macroeconomy: a Further Look
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    If the Income Effect Is ________ the Substitution Effect, the Labor
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If the Income Effect Is ________ the Substitution Effect, the Labor

Question 221

Question 221

Multiple Choice

If the income effect is ________ the substitution effect, the labor supply curve has a positive slope.


A) greater than
B) smaller than
C) equal to
D) unrelated to

Correct Answer:

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