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In: Economics

Now suppose a technological change increases the economy’s output by $2,200 billion. The real wage rises...

Now suppose a technological change increases the economy’s output by $2,200 billion. The real wage rises to $21,500. In response, the number of labour increases to 51 million workers. In the same three panels, you have already drawn, sketch the new curves that result from this change. Explain what happens to the level of employment, the level of potential output, and the long-run aggregate supply curve.

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Rahul Sunny answered 2 years ago
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