Ask Question
BusinessBusiness
8 August, 15:29

In the U. S., between 1990 and 2007, capital stock and the level of technology increased dramatically. During the same period, employment and real wages rose. What do these set of events suggest?

a. The demand for labor increased by more than the increase in supply of labor over this period.

b. The demand for labor increased by less than the increase in supply of labor over this period.

c. The demand for labor decreased while the supply of labor increased over this period.

d. The demand for labor and the supply of labor decreased over this period.

+3
Answers (1)
  1. 8 August, 19:00
    0
    c. The demand for labor decreased while the supply of labor increased over this period

    Explanation:

    In a classical model, the production function depends on the capital stock (K) and labor (L). The production function is: Y (K, L). If the capital stock and technology increases, then firms will use more this production factor than labor. This will traduce in a decrease in the demand labor. Remember firms demand labor and workers offer it.

    If real wages increase too, then more people would like to work. This will increase the total labor supply.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In the U. S., between 1990 and 2007, capital stock and the level of technology increased dramatically. During the same period, employment ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The Lancaster State Bank is thinking about purchasing a corporate bond that pays a coupon of 8.5%. The bank has a marginal tax rate of 25%. What is the after-tax yield on this bond?
Answers (2)
he following information is provided for Southall Company: Sales revenue$125,000 Variable manufacturing costs 42,500 Fixed manufacturing costs 37,500 Variable selling and administrative costs 15,000 Fixed selling and administrative costs 12,500 What
Answers (1)
Which entity prepares contract forms for trec?
Answers (1)
Dane, Inc. purchased 10 shares of its own $5 par value common stock for $20 per share. The journal entry to record this transaction would include a (debit/credit) to the Treasury Stock account in the amount of $
Answers (1)
Question 1 Ahmed is a professional football player in UAE. Aljazeera Club is negotiating with him to join the club.
Answers (1)
New Questions in Business
18. What was a major factor in the failure of (mostly) command economies? A. Lack of voting rights B. Lack of the profit motive C. Not enough military spending D. Abundant basic goods
Answers (2)
You are saving to buy a $188,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 7.3 percent.
Answers (1)
Has the company you're auditing recently increased or decreased their operations due to mergers or sales of parts of the business?
Answers (1)
Tom lives in an apartment where he pays $8,000 a year in rent. Sarah lives in a house that could be rented for $10,000 a year. How much do these housing services contribute to GDP?
Answers (1)
What happens to the percentage of tax as the income that is taxed?
Answers (1)
Home » Business » In the U. S., between 1990 and 2007, capital stock and the level of technology increased dramatically. During the same period, employment and real wages rose. What do these set of events suggest? a.
Sign Up Forgot Password?