A Decrease in Productivity Will Cause Which of the Following

Multiple Choice

A decrease in productivity will cause which of the following to occur in the labour market model?

A) Both the wage- setting and price- setting curves to shift upward.
B) The wage- setting curve to shift downward, and the price- setting curve to shift upward.
C) Both the wage- setting and price- setting curves to shift downward.
D) The wage- setting curve to shift upward, and the price- setting curve to shift downward.
E) The price- setting curve to shift downward, and no shift in the wage- setting curve.