Figure 3.2 reproduces the lower, modern-sector diagram of Figure 3.1a, only this
time the labor demand curves do not shift uniformly outward but in fact cross. Demand
curve D2(KM2) has a greater negative slope than D2(KM1) to reflect the fact that
additions to the capital stock embody laborsaving technical progress—that is, KM2
technology requires much less labor per unit of output than KM1 technology does.