Suppose the stock of capital increases by 2% and employment increases by 2%. Given this information, we know that
A. output per capita will increase by 6%.
B. output will increase by 4%.
C. output per capita will increase by less than 4% and more than 2%.
D. none of the above
Answer:D
Suppose the stock of capital increases by 2% and employment increases by 2%. Given this information, we know that
A. output per capita will increase by 6%. B. output will increase by 4%. C. output per capita will increase by less than 4% and more than 2%. D. none of the above