In an economy where the real wage is determined as a fixed share of the output produced per worker, consider a scenario where a widespread technological innovation increases the amount of output each worker can produce. If the proportional division of output between wages and firm profits remains unchanged, what is the most likely outcome for the real wage?
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In an economy where the real wage is determined as a fixed share of the output produced per worker, consider a scenario where a widespread technological innovation increases the amount of output each worker can produce. If the proportional division of output between wages and firm profits remains unchanged, what is the most likely outcome for the real wage?
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