Holding other factors constant, technological progress ________ the real wage and ________ employment.
A)increases; increases
B)increases; decreases
C)increases; does not change
D)decreases; increases

Question

Quizplus · Accepted Answer

Technical progress almost always increases worker productivity, which makes workers more desirable to employers. The demand for labor will shift right and therefore puts upward pressure on wages and increase employment too.

Holding Other Factors Constant, Technological Progress ________ the Real Wage