The more generous income support for the

unemployed shifts the PS curve upwards.

Policies make it less costly to

fire workers mean that the consequences of

shirking on the job would be worse for the

employee, so the employer could reduce the wage and still expect the worker to

work up to standard. This would be a shift down in the WS curve.

An upward shift in the PS curve resulting from an increase in the productivity of labour.

An upward shift in the WS curve because workers have more positive feelings (or less negative feelings) towards their employer so that keeping the job becomes more valuable to them.