Assume That a Country Experiences a Reduction in Productivity That

question 38

Multiple Choice

Assume that a country experiences a reduction in productivity that shifts the labor demand curve downward and to the left. If the labor 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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Definitions:

Sole Proprietorship

A business structure where a single individual owns and operates the business.

Independence

The state or quality of being autonomous and not influenced or controlled by others in matters of opinion, conduct, decision-making, or action.

Enforceable

A term describing a legal agreement or contract that is valid and can be upheld and compelled by law.

Writing

The act or process of composing text for various purposes, such as communication, expression, or information dissemination.