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Which of the Following Statements Is True

Question 72

Multiple Choice

Which of the following statements is true?


A) Technological gains tend to reduce the demand for labor because producers substitute technology and capital for labor.
B) Technological change and capital investment tend to increase real wages because labor productivity increases.
C) Technological change and capital investment tend to reduce the quantity of labor employed, and reduce real wages.
D) Technological change and capital investment tend to reduce the demand for labor and increase the supply of labor leading to an indeterminate effect on real wages.

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