ourses/114824/quizzes/653 /53/take Question 21 0.75 pts The diagram describes the general movements in employment, profits, and wages in the 1950s to 1970s, using the labour market model. In addition, note that the postwar accord collapsed in the US in the 1960s, while it survived in Sweden. Which of the following statements regarding this period is correct? Wage setting curve. Labour force late 1960s/early 70s Barcaring pop: inconsistent claims of workers Real wage and employers on cutout per worker in Late 196Carearly 70s at une Price setting curve late 2950- mid 60s Price setting curve, late 1960s/carly 705 Countward shift of price setting curve due to productivity slowdown and cud shock partially offset by reduction in tax rate Wage-setting an postwar accord. Late 19506-mid 60s U - 7% Employment, N https://drive.google.com/file/d/1/_ulyliQS-Tw_5pUa20AcSgWW88RVMdk/view?usp=sharing c The golden age ended because of aggregate demand problems, caused by the oil shocks of the 1970s. Due to the strong bargaining position of workers, the oil shock primarily hit employers, redistributing income from profits to wages, causing an end to the fair-shares bargaining (the postwar accord) in the US. With a powerful centralised labour movement, the wage-setting curve was kept high in Sweden, causing high wage demand, low profits, and low unemployment. With less powerful trade unions, the wage-setting curve in the US rapidly fell back, leading to lower wages and higher unemployment