Which of the following can decrease simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?
A) a decrease in the productivity of workers
B) a decrease in the rate of immigration
C) an increase in the price level of goods
D) an increase in the number of workers of retiring age

Question

Quizplus · Accepted Answer

A decrease in the productivity of workers would lead to employers valuing the work of each employee less, which could result in both a lower equilibrium wage rate and a decrease in the equilibrium quantity of workers hired, as employers seek to cut costs or hire fewer workers due to the lower productivity.

Which of the Following Can Decrease Simultaneously the Equilibrium Quantity