How does a temporary technological improvement that raises labor's marginal productivity affect the supply of labor?

Question

Quizplus · Accepted Answer

Temporary technological improvements that raise labor's marginal productivity can have mixed effects on labor supply due to income and substitution effects. The income effect may lead workers to supply less labor because they can maintain their desired income level with less work. Conversely, the intertemporal substitution effect encourages workers to supply more labor while their productivity, and hence wage rate, is higher. These opposing forces mean the overall impact on labor supply can vary depending on which effect dominates.

How Does a Temporary Technological Improvement That Raises Labor's Marginal