With No Technological Change, a 7 Percent Increase in Capital

question 66

Multiple Choice

With no technological change, a 7 percent increase in capital per hour of labor causes approximately a percent increase in real GDP per hour of labor.

• A) 7
• B) 7/3
• C) 1/3
• D) 14

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Definitions:

Net Assets

The total assets of an entity minus its total liabilities, representing the entity's equity value or net worth.

Income Ratio

A financial metric that compares different streams of income to assess financial performance or profitability.

Capital Balances

Capital balances indicate the amount of equity a partner or shareholder has in a business, reflecting the net contributions and withdrawals, plus their share of profits or losses.

Income and Losses

Income and losses refer to the financial results of a company's operations, with income indicating profit and losses indicating expenses exceeding revenues.