An adverse supply shock would directly ________ labour productivity by changing the amount of output that can be produced with any given amount of capital and labour.It would also indirectly ________ average labour productivity through changes in the level of employment.

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An adverse supply shock would decrease labour productivity by reducing the amount of output that can be produced with any given amount of capital and labour. It would also increase average labour productivity through changes in the level of employment, as firms would need to lay off workers due to lower output levels.

An Adverse Supply Shock Would Directly ________ Labour Productivity by Changing