Macroeconomics 6th Edition by Robert Hall,Marc Lieberman

تمرين 5

Show what would happen to the production function if the capital stock decreased. Suppose, too, that the decrease in the capital stock-because it made workers less productive to firms-shifted the labor demand curve leftward. Graphically illustrate the full impact of a decrease in the nation's capital stock under this assumption. What government policies could cause a decrease in the capital stock?