In the labour market, an increase in labour productivity ________ the real wage rate and ________the level of employment.

Question

Quizplus · Accepted Answer

An increase in labor productivity typically raises the real wage rate because workers are able to produce more output per hour, making them more valuable to employers. This increased productivity can also lead to higher levels of employment as businesses expand and hire more workers to capitalize on the increased efficiency.

In the Labour Market, an Increase in Labour Productivity ________