Which of the Following Is NOT a Reason Why Natural

question 58

Multiple Choice

Which of the following is NOT a reason why natural GDP might fall as a result of a supply shock?

• A)The production function shifts downward.
• B)There might be a voluntary decline in the supply of labor in response to the decline in real wages.
• C)The supply of labor is a function of the expected wage rate.
• D)none of the above

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