Suppose that new high-technology farming equipment is developed. These new machines are substitutes for low-income workers such
as farm laborers, but they are complements for high- income workers such as farm technicians and farm owners. This new technology will ______ wages in for low-income workers and ______ income inequality.
This new high - technology equipment replaces low - income workers.So the unemployment will increase in low - income workers .So there will be a lot of workers available and they will be ready to work at lower wages.
Since the low - income workers are overthrown by this equipment but it doesn't affect high income-workers and low - income workers are working at lower wages.So the difference in the wages is increased hence income inequality is also increased.
