If new capital increases labor productivity, the supply of labor _____________and the demand for labor_________

Name: If new capital increases labor productivity, the supply of labor _____________and the demand for labor_________
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When new capital increases labor productivity, the demand for labor increases because each worker is now more productive and can contribute more to output. The supply of labor typically stays the same as it is not directly affected by productivity changes.

If New Capital Increases Labor Productivity, the Supply of Labor