suppose there is a shift in the representative consumer's preferences: namely, the consumer prefers, given the market real interest rate, to consume more current leisure and less current consumption goods

Economics Apr 02, 2022

suppose there is a shift in the representative consumer's preferences: namely, the consumer prefers, given the market real interest rate, to consume more current leisure and less current consumption goods. Determine with the aid of diagrams the effects of this on current aggregate output, current employment, the current real wage, the current consumption, and current investment