Which of the following best describes the impact of technological change on labor?
A)Technology causes unemployment in the short run and lower incomes in the long run.
B)Technology causes unemployment in the short run and higher incomes in the long run.
C)Technology causes unemployment in the long run and higher incomes in the short run.
D)Technology causes unemployment in the long run and lower incomes in the short run.
E)Technology causes unemployment and lower incomes in both the long run and the short run.

Question

Quizplus · Accepted Answer

Technological change initially may cause unemployment as workers are replaced by machines or software, but in the long run it tends to create new jobs and increase productivity, leading to higher incomes. This has been the trend throughout history, as new technologies have replaced old ones and created new industries and new opportunities for workers. While there may be some short-term pain as workers adjust to these changes, the overall impact of technological change has been positive for the economy and for workers.

Which of the Following Best Describes the Impact of Technological