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1 Crowding effects of increasing G. a) C,L fall b) Production increases ( because L fall, labor increase) c) W decrease (increase in labor) 2 Effect of change in Z (increase in Z) a) more consumption for leisure if could increase or decrease b) wage increase c) increase MRn

/in /by

1

Crowding effects of increasing G.

  1. C,L fall
  2. Production increases ( because L fall, labor increase)
  3. W decrease (increase in labor)

2

Effect of change in Z (increase in Z)

  1. more consumption for leisure if could increase or decrease
  2. wage increase
  3. increase MRn
 
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