Which of the following will cause an increase in output per worker in the long run?
A)an increase in the saving rate
B)a reduction in the depreciation rate
C)an increase in the stock of human capital
D)all of the above

Question

Quizplus · Accepted Answer

An increase in the saving rate (A) leads to an increase in investment, which in turn can lead to more capital per worker and higher productivity. A reduction in the depreciation rate (B) means that capital lasts longer, leading to a higher capital stock and higher output per worker. An increase in the stock of human capital (C) means that workers become more skilled and efficient at their jobs, which leads to higher productivity. Therefore, all three options (A, B, and C) will cause an increase in output per worker in the long run.

Which of the Following Will Cause an Increase in Output