In our model, the affects of changes on wages are ambiguous be- cause the income and substitution effects move in opposite direc- tions. How do (many) macroeconomists deal with this ambiguity in terms of studying business cycle"? How do economists resolve this ambiguity when studying long term economic development? Taken advantage of this analysis: give a major reason the average hours worked for all individuals [not just those in the labor force) grow between 1950 and 1998, but decline alter 1998