Why Is a Rightward Shift of the Labor Supply Curve

question 17

Multiple Choice

Why is a rightward shift of the labor supply curve difficult to rationalize in the classical model?

• A) The labor supply curve is based on firms' preferences.
• B) Labor supply is very difficult to measure.
• C) The labor supply curve is almost never a known entity.
• D) Workers' preferences and therefore labor supply tend to change very slowly.
• E) Workers' preferences and therefore labor supply tend to change very quickly.

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