A feedback from low real wages to low productivity could be caused by
A)an increase in the labor force caused by more immigration.
B)a reduction in the power of labor unions.
C)a reduction in the real minimum wage.
D)increased worker anxiety about job security.
E)all of the above.

Question

Quizplus · Accepted Answer

All of the options provided can lead to a feedback from low real wages to low productivity. Increased immigration can lead to an oversupply of labor, reducing wages and potentially productivity if workers are less skilled or motivated. A reduction in the power of labor unions can lead to lower wages and less investment in worker training, reducing productivity. A reduction in the real minimum wage decreases workers' purchasing power and can demotivate workers, leading to lower productivity. Increased worker anxiety about job security can lead to lower morale and productivity as workers are more focused on keeping their jobs than on being productive.

A Feedback from Low Real Wages to Low Productivity Could