Which of the following statements is correct?

Question

Quizplus · Accepted Answer

When workers become more productive, the demand for labor increases as firms have an incentive to hire more workers at the prevailing wage rate. This shifts the demand for labor curve rightward, resulting in an increase in both the equilibrium wage rate and employment level. The other statements are false: increasing human capital leads to an increase in labor productivity and a rightward shift in the supply of labor curve, decreasing technology leads to a leftward shift in the demand for labor curve, and increasing labor force participation leads to a rightward shift in the supply of labor curve.

Which of the Following Statements Is Correct