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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Definitions:

Promotional Strategy

A plan implemented by a business to increase awareness, demand, and sales of a product or service.

Diffusion of Innovation

The process by which a new idea, product, or technology spreads through a population or social system.

Product Adopter

An individual or entity that starts using a new product, often categorized by the timing of adoption, such as innovators, early adopters, early majority, late majority, and laggards.

Population Incidence

The number of new cases of a particular condition or disease in a specified population within a given time period, often used to measure risk and spread within epidemiological studies.