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Skim the opinion piece from the New York Times attached to the end of the assignment. In our models, we could think of modeling the
Skim the opinion piece from the New York Times attached to the end of the assignment. In our models, we could think of modeling the desire to shift to a shorter work week as an increase in the value that the household places on leisure relative to consumption in the utility function; that is, an increase in . Suppose that this shift raises the productivity of workers (a possibility suggested by the article) and this increase in productivity raises the real wage. By comparing Scenario 2 to Scenario 4, demonstrate that one of these scenarios unambiguously predicts that a rise in accompanied by a rise in labour productivity will decrease hours worked (that is, result in a shorter work week) but the other scenario has ambiguous predictions as to whether or not a rise in accompanied by a rise in labour productivity will decrease hours worked
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