Suppose the Stock of Capital Increases by 2% and Employment

question 17

Multiple Choice

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

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