If new capital increases labour productivity, the supply of labour ________ and the demand for labour ________.

Name: If new capital increases labour productivity, the supply of labour ________ and the demand for labour ________.
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When new capital increases labor productivity, the demand for labor increases because firms want to hire more workers to take advantage of the increased productivity. However, the supply of labor stays the same because it is not directly affected by changes in productivity.

If New Capital Increases Labour Productivity, the Supply of Labour