Suppose a Country's Labor Supply Increases in a Year While

question 178

Multiple Choice

Suppose a country's labor supply increases in a year while its physical capital stock remains constant.Which of the following is likely to happen in this case if output is a function of capital and the total efficiency units of labor?

• A) Its output per capita will decrease.
• B) Its total output will decrease.
• C) Its total output will increase.
• D) Its total output will remain constant.

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Definitions:

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