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Assuming no change in the nominal wage and a significant increase in human capital, the output per worker will

User CarlosZ
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1 Answer

11 votes

Answer:

B. Increase and the real wage will increase.

Step-by-step explanation:

In the case when there is a rise in population so the labor supply also rises and the equilibrium labor quantity would also rise

So it would result in rise in capital market due to which the labor would become more productive and there is a rise in the labor demand

This leads to greater real wages rate and rise in full labor quantity employment

Hence, the option b is correct

User Drew Rush
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