Long-term increases in productivity that have increased the demand for labor and the real wages of labor have resulted primarily from ______ and _____.
A) technological progress; a modernized capital stock
B) technological progress; an increased labor supply
C) a modernized capital stock; skill-biased technological change
D) a modernized capital stock; an increased labor supply

Question

Quizplus · Accepted Answer

Technological progress and a modernized capital stock are key drivers of productivity growth, which in turn increases the demand for labor and real wages.

Long-Term Increases in Productivity That Have Increased the Demand for Labor