Solved

Suppose That a Technological Decline Makes Labor Less Productive

Question 8

Multiple Choice

Suppose that a technological decline makes labor less productive. What is likely to happen to wages and to potential output?


A) Wages increase and potential output increases.
B) Wages increase and potential output decreases.
C) Wages decrease and potential output increases.
D) Wages decrease and potential output decreases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: Crowding out refers to<br>A) increases in consumption,

Q4: Suppose the stock of capital remains constant.

Q5: An increase in the employment tax will

Q6: The difference between exports and imports in

Q7: Table 7.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2855/.jpg" alt="Table 7.1

Q9: Table 7.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2855/.jpg" alt="Table 7.1

Q10: The level of output produced when the

Q11: If the government liberalizes immigration policies, the

Q12: An open economy refers to an economy

Q13: What assumptions are made concerning wages and