Suppose that technological advancement makes labor more productive. What is likely to happen to wages and to potential output?
A) Wages decrease and potential output increases. B) Wages decrease and potential output decreases.
C) Wages increase and potential output increases. D) Wages increase and potential output decreases.
C
You might also like to view...
Which of the following factors may lead to a decline in the real value of money?
a. Increase in the rate of interest b. Decline in aggregate demand in the economy c. Decrease in money supply d. Increase in the average price level e. Decrease in aggregate output
Which economist believes all profits are derived from the exploitation of workers?
A. Frank Knight B. Joseph Schumpeter C. Karl Marx D. John Maynard Keynes
Economic growth always takes the form of
A.) An expansion of production possibilities. B.) A change in how goods are distributed. C.) A movement along the production possibilities curve. D.) Higher prices.
When collecting data to conduct research, if the sample used is not random, ________ occurs.
A. selection bias B. survivor bias C. difference-in-differences D. regression discontinuity