q2

Question 5 In the DSGE model, a negative shock to total factor productivity will and this will (a) shift the labour demand schedule up; increase both the real wage and employment (b) shift the labour supply schedule up; increase the real wage and reduce employment (0) shift the labour demand schedule down; decrease both the real wage and employment (d) shift the labour supply schedule down; reduce the real wage and increase employment (e) leave the labour supply and demand schedules unchanged; leave unchanged the real wage and employment