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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U.S. import spending is not affected by U.S. real income but is influenced by the economic activity of its major trading partners and the exchange rate, hence import spending is taken as autonomous
Indicate whether the statement is true or false
If the real interest rate and the nominal interest rate are both negative and equal to each other, then the
A. inflation premium is zero. B. inflation premium is also negative. C. inflation premium is positive. D. economy must be in a recession.
The smallest single component of M1 is:
A. demand deposits. B. savings account balances. C. other checkable deposits. D. traveler's checks.
What is minimum efficient scale? What is likely to happen in the long run to firms that do not reach minimum efficient scale?
What will be an ideal response?