Which of the following best describes the impact of technological change on labor?
A)It causes unemployment in the short run and lower incomes in the long run.
B)It causes unemployment in the short run and higher incomes in the long run.
C)It causes unemployment in the long run and higher incomes in the short run.
D)It causes unemployment in the long run and lower incomes in the short run.
E)It causes unemployment and lower incomes in both the long run and the short run.

Question

Quizplus · Accepted Answer

Technological change can result in job displacement in the short run as workers may not have the skills to adapt to the new technology. However, in the long run, technological change often leads to higher productivity and increased economic growth, which can result in higher incomes for workers who have the skills to work with the new technology. Therefore, while there may be short-term job loss, the long-term impact is often positive.

Which of the Following Best Describes the Impact of Technological