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BrendanOO7 BrendanOO7
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Posts: 260
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6 years ago
Over a lifetime, if the income effect dominates the substitution effect, then
A) an expected increase in the wage will reduce work hours.
B) an expected increase in the wage will increase work hours.
C) an expected increase in the wage will leave work hours unchanged.
D) any wage increase, expected or unexpected, will reduce work hours in this case.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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