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Category > Economics Posted 12 May 2018 My Price 3.00

consumer’s preferences

Suppose that there is a shift in the representative consumer’s preferences. Namely, the consumer prefers, given the market real interest rate, to consume less current leisure and more current consumption goods.

(a) Determine the effects of this on current aggregate output, current employment, the current real wage, current consumption, and current investment.

(b) Explain your results. What might cause such a change in the preferences of consumers?

 

 

 
 

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Maurice Tutor
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Status NEW Posted 12 May 2018 09:05 PM My Price 3.00

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