Other Things Equal, Which of the Following Would Increase Labor

question 42

Multiple Choice

Other things equal, which of the following would increase labor productivity the most?

• A) The stock of real capital and inputs of labor increase proportionately.
• B) The increase in the stock of real capital exceeds the increase in inputs of labor.
• C) The increase in inputs of labor exceeds the increase in the stock of real capital.
• D) Inputs of labor increase and the stock of real capital remains constant.

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