Some believe that technological progress leads to higher unemployment in the medium run. This claim that technological progress results in an increase in unemployment in the medium run is supported by:
A) economic theory, but contradicted by the evidence.
B) neither theory nor evidence.
C) both theory and evidence.
D) the evidence, but contradicted by theory.
E) evidence from Australia only.

Question

Quizplus · Accepted Answer

Economic theory generally suggests that technological progress can lead to job displacement in the short term but tends to create new jobs and increase productivity in the medium to long term. Empirical evidence does not consistently support the claim that technological progress leads to higher unemployment in the medium run.

Some Believe That Technological Progress Leads to Higher Unemployment in the Medium