Many economists argue that an improvement in technology can increase wage, real interest rate and employment with a competitive labour market and credit market. Explain this argument with the help of appropriate graphs. What are the two key assumptions in your explanation?

Many economists argue that an improvement in technology can increase wage, real interest rate and employment with a competitive labour market and credit market. Explain this argument with the help of appropriate graphs. What are the two key assumptions in your explanation?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 5SQP

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Many economists argue that an improvement in technology can increase wage, real
interest rate and employment with a competitive labour market and credit market.
Explain this argument with the help of appropriate graphs. What are the two key
assumptions in your explanation?

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