Question
Which one of the following conclusions is not supported by the intertemporal substitution hypothesis? A) The intertemporal substitution hypothesis suggests that the life time income
Which one of the following conclusions is not supported by the intertemporal substitution hypothesis?
A) The intertemporal substitution hypothesis suggests that the life time income of an worker don't change.
B) The intertemporal substitution hypothesis suggests that there is always no income effect when wage changes.
C) A high wage worker may choose to work 60+ hours a week during her peak wage years in order to retire at a younger age later in life.
D) An unemployed person might choose to become a discouraged worker during a lowwage recession with an eye toward returning to the labor market when wages increase
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