What Sort of Productivity Shocks Would Cause Lower Real Wage

question 43

Multiple Choice

What sort of productivity shocks would cause lower real wage growth and result in lower growth in labor productivity?

• A) Productivity shocks which decrease supply of labor given the demand for labor.
• B) Productivity shocks which increase supply of labor given the demand for labor.
• C) Productivity shocks which increase demand for labor given the supply of labor.
• D) Productivity shocks which decrease demand for labor given the supply of labor.

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