Classical economists believed that technological progress would make the labor force

Question

Quizplus · Accepted Answer

Classical economists believed that technological progress would increase the productivity of the labor force, which would shift the labor demand curve to the right, meaning that firms would demand more labor at every wage rate. This would lead to an increase in real wage rates, as firms would be willing to pay higher wages to attract workers with enhanced skills and knowledge. As such, option A is the correct choice.

Classical Economists Believed That Technological Progress Would Make the Labor