Suppose That the Demand for Labour Decreases Due to an Economic

Multiple Choice

Suppose that the demand for labour decreases due to an economic downturn,and union workers are in the first year of a three-year labour contract.With respect to these union labourers,the economic downturn will most likely ________ the nominal wage and ________ the quantity of labour hired.

A) decrease; not change
B) decrease; decrease
C) not change; decrease
D) not change; not change