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based on the figure, if the economy is initially at point b and new technology leads to an increase in labor productivity, then in the long run we will end up at point

Sagot :

Because the new technology has led to increase in labor productivity so both LRAS and SRAS shift to the right meaning more about are produced at point D.

According to a recent survey of more than 600 manufacturing executives conducted by Deloitte and the Manufacturers Alliance for Productivity and Innovation, companies that invest in "smart factory" technology will see a 10% to 12% average increase in metrics such as manufacturing output and labor productivity (MAPI). The survey looked at how various measures at these facilities had changed over the last three years.

The use of quality sensing technologies improves the efficiency of the entire value chain and can eliminate disruptions. If production remains constant but employees are replaced by automation, labor productivity will increase.

To learn more about new technology in labor productivity, please refer:

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