Question: What do macroeconomists mean by intertemporal substitution? Explain how intertemporal substitution is important for the current labour supply. Illustrate your response using the labour supply

What do macroeconomists mean by intertemporal substitution? Explain how intertemporal substitution is important for the current labour supply. Illustrate your response using the labour supply schedule from the real intertemporal model with investment.

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Answer Intertemporal substitution in macroeconomics refers to the idea that individuals and firms ma... View full answer

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