Based on Our Understanding of the Labour Market Model, We

Multiple Choice

Based on our understanding of the labour market model, we know that a decrease in the markup will cause:

A) a decrease in the natural rate of unemployment and no change in the real wage.
B) a decrease in the natural rate of unemployment and a decrease in the real wage.
C) an increase in the equilibrium real wage.
D) an increase in the natural rate of unemployment.
E) a decrease in the equilibrium real wage.