Assume That the Stock of Capital Increases by 6% and Employment

question 20

Multiple Choice

Assume that the stock of capital increases by 6% and employment increases by 4%. Given this information, we know that:

• A) output per capita will increase by more than 3%.
• B) output per capita will increase by less than 2%.
• C) output per capita will increase by less than 3% and more than 2%.
• D) output per capita will increase by less than 2% and more than 1%.
• E) output per capita will increase by 5%.