Question: Please help with following MCQ question one: The figure below shows the long-run adjustment process in the labour market after technological progress. Based on this
Please help with following MCQ
question one:

The figure below shows the long-run adjustment process in the labour market after technological progress. Based on this information, which of the following statements is correct? Output per worker (new technology) Output per worker (old technology) Wage setting curve Real wage (new) B Price-setting curve (new technology) Real wage (old) E Price-setting curve (old technology) Real wage 0 U- 6% U-4% (initial long-run (new long-run unemployment rate) unemployment rate) Employment, N O A. At D firms increase investment, and hence employment, due to the large gap between the real wage paid and the workers' wage- setting curve. O B. The adjustment from equilibrium A to the new equilibrium at B is immediate. O C. Lower unemployment at E implies a higher wage is required to attract workers, resulting in the higher real wage at B. O D. The new technology does not cause any increase in unemployment, either in the short run or in the long run
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