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:

Spending

The action of using money to purchase goods or services.

Spending

The act of using money to purchase goods or services.

Income

Funds obtained, often on a recurring schedule, as a result of work or investment profits.

Government Intervention

Actions taken by the government to influence the economy or society, ranging from regulations and taxes to subsidies and direct support.