Real Business Cycle model: Effect of adverse supply side shock on output, employment and real wage?

I know that it depends on the elasticity of the supply curve for labour, and that there will be an adverse effect on output and employment, but im not sure about real wage. Im looking at diagrams of postive technological shocks but I cant figure it out. Any ideas how I can answer this concisely? Or if you know of any good diagrams illustrating this that would be great.

Real Business Cycle model: Effect of adverse supply side shock on output, employment and real wage?
Yeah, you are right regarding employment and real output - they both will fall. I'm quite sure that real wages should fall too because of equilibrium in labor market. there could be arguments regarding "sticky wages" - which will keep wages frozen, but opposite effect will be due to increase in price level.


So I would say change in real wages are really unidentified. All depends on elasticities and size of shifts in AD, AS, labor supply and labor demand - you can't give right answer without empirical data.

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