Other things being equal, an increase in labour productivity will shift the labour supply curve to the right.

Question

Quizplus · Accepted Answer

An increase in labor productivity typically affects the labor demand curve, making firms willing to hire more labor at any given wage, rather than shifting the labor supply curve. The labor supply curve represents the quantity of labor that workers are willing to supply at different wage levels, and an increase in productivity does not directly change workers' willingness to supply labor.

Other Things Being Equal, an Increase in Labour Productivity Will