Assume That a Country Experiences a Reduction in Productivity That

Multiple Choice

Assume that a country experiences a reduction in productivity that shifts the labor demand curve downward and to the left. If the real wage were rigid, this would lead to:

A) no change in the real wage and a rise in unemployment.
B) no change in the real wage and no change in unemployment.
C) no change in the real wage and a fall in unemployment.
D) a decrease in the real wage.