An increase in technology that enhances labor productivity will likely result in:
A) a decrease in labor employment and an increase in the wage rate.
B) an increase in labor employment and an increase in the wage rate.
C) a decrease in labor employment and a decrease in the wage rate.
D) an increase in labor employment and a decrease in the wage rate.
E) employers using less labor and more capital while the wage effect is unknown.
B
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The demand for loanable funds curve shifts in response to changes in
A) the amount of household savings. B) the expected future disposable income. C) expected profits. D) the real interest rate. E) wealth.
With complete crowding out, an increase in government spending
A) is completely offset by a reduction in private spending. B) is matched by an increase in private spending. C) results in an increase in aggregate supply. D) results in an increase in aggregate demand.