Assume That a Country Experiences a Reduction in Productivity That

question 64

Multiple Choice

Assume that a country experiences a reduction in productivity that shifts the labour demand curve downward and to the left. If the labour market were always in equilibrium, this would lead to:

• A)a lower real wage and a rise in unemployment.
• B)a lower real wage and no change in unemployment.
• C)a lower real wage and less unemployment.
• D)no change in real wage or in unemployment.

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The act of putting in a great deal of effort and endurance towards achieving a goal or completing tasks.

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The ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed.

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