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Determine whether each scenario is an example of intertemporal substitution and label each accordingly. Panndu is a farmer in Pakistan. After a bad growing season, he decides to get another job in a local factory to make up for his lost wages. Raul is in his 60s and works in the construction industry. A new boom in property leads him to put off his retirement for another four years. Jess is a public-sector worker and mother. A decline in economic conditions means her wages are cut by 30% . As a result, she decides to quit her job and focus on raising her child. Colin works in a DVD factory and gets paid the minimum wage. The government decides to reduce the minimum wage from $7 per hour to $5 because of poor economic conditions. Colin decides to work extra overtime to make up for his fall in wages. Answer Bank
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Determine whether each scenario is an example of intertemporal substitution and label each according...
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