Given below are two statements :
Statement I: An Adverse supply shock reduces the marginal productivity of
labor.
Statement II : Output in the short run is a function of the equilibrium condition in the labor market.
In the light of the above statements, choose the correct answer from the options given below:

A

Both Statement I and Statement II are true.

B

Both Statement I and Statement II are false.

C

Statement I is true but Statement II is false.

D

Statement I is false but Statement II is true.