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Sally currently does not work, and at her current market wage she is indifferent between working and not working. Suppose here market wage increases due
Sally currently does not work, and at her current market wage she is indifferent between working and not working.
- Suppose here market wage increases due to external factors. What will Sally do? Illustrate with budget constraints and indifference curves.
- What do you think would happen to Sally's reservation wage if her non-labor income increases? Why?
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
