An increase in labor productivity would cause a rightward shift of the labor supply curve.

Name: An increase in labor productivity would cause a rightward shift of the labor supply curve.
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Question

Quizplus · Accepted Answer

An increase in labor productivity makes workers able to produce more goods and services per unit of time, which typically affects the demand for labor rather than the supply. It makes labor more valuable to employers, potentially shifting the labor demand curve to the right, not the labor supply curve.

An Increase in Labor Productivity Would Cause a Rightward Shift