Technological change
A) inevitably creates persistent technological unemployment.
B) is reflected in improvements in labor output per hour.
C) increases the intended spending function faster than the growth in output.
D) has no impact on long-run aggregate supply without specific government intervention to increase it.
E) causes the profitability of existing investment to fall, reducing the intended spending function.

Question

Quizplus · Accepted Answer

Technological change is reflected in improvements in labor output per hour. As technological innovation leads to improved productivity, fewer inputs are required to produce a given level of output. This means that labor productivity increases, leading to increased output per hour. This can also lead to potential job displacement when certain jobs can be done more efficiently with new technology. However, it does not necessarily lead to persistent technological unemployment.

Technological Change