For This Question, Assume That Y = N

Multiple Choice

For this question, assume that Y = N. Based on our understanding of the labour market model, we know that an increase in the markup will cause:

A) an increase in the natural level of employment.
B) no change in the natural level of employment.
C) no change in the natural level of output.
D) a decrease in the natural level of output.
E) an increase in the natural level of output.