A temporary adverse productivity shock would not
A)shift the labour demand curve downward.
B)shift the labour supply curve upward.
C)reduce the level of employment.
D)reduce the amount of output that can be produced at any level of employment.

Question

Quizplus · Accepted Answer

A temporary adverse productivity shock would not shift the labor supply curve upward because it primarily affects the demand for labor, not the supply. The shock reduces productivity, leading firms to demand less labor, but it does not directly influence workers' willingness to supply labor.

A Temporary Adverse Productivity Shock Would Not