What are the effects of an increase in preferences toward more leisure:The effect on real wages is ambiguous.Real wages go down.Real wages remain constant.O Real wages go up. A pro-cyclical variable is one thatTends to move in the same direction as GDPTends to cause recessionsTends to rise as the economy goes into a business cycle recessionO All of these things

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What are the effects of an increase in preferences toward more leisure: O The effect on real wages is ambiguous. Real wages go down. Real wages remain constant. Real wages go up.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

What are the effects of an increase in preferences toward more leisure:
The effect on real wages is ambiguous.
Real wages go down.
Real wages remain constant.
O Real wages go up.

A pro-cyclical variable is one that
Tends to move in the same direction as GDP
Tends to cause recessions
Tends to rise as the economy goes into a business cycle recession
O All of these things

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