This question is based on the following wage-setting and price-setting relationships. Study the labour market diagram. Which one of the following statements is INCORRECT? Select one: A. At point C, the unemployment rate is higher, which increases the workers' bargaining position and the nominal wage they can bargain for decreases. B. At an unemployment rate to the left of the natural rate of unemployment, workers will bargain for a real wage higher than the implied real wage. C. PS is a horizontal line because of the assumption that the unemployment rate does not influence the markup of firms. D. At the equilibrium position, the targeted real wage is equal to the real wage implied by price setting, and the level of unemployment is at its natural level