The graph below shows three production functions. Fo shows the current production function for the economy, and capital per worker is currently (K/L)o; thus ouput per worker is Y/L)o. Suppose that there is a decrease in capital per worker. Which of the points on the graph could show the new capital per worker and output per worker? OA. 3 C. 1 OB. 2 O D. 4

The graph below shows three production functions. Fo shows the current production function for the economy, and capital per worker is currently (K/L)o; thus ouput per worker is Y/L)o. Suppose that there is a decrease in capital per worker. Which of the points on the graph could show the new capital per worker and output per worker? OA. 3 C. 1 OB. 2 O D. 4

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section17.1: Economic Growth Around The World

Problem 1QQ

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