In Neoclassical growth theory,increasing the amount of capital employed in production ________ the average standard of living as long as the marginal product of capital exceeds zero.

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In Neoclassical growth theory, increasing the amount of capital employed in production unambiguously raises the average standard of living as long as the marginal product of capital exceeds zero. This is because as more capital is employed, the productivity and efficiency of labor increases, leading to higher output and incomes. However, if too much capital is employed relative to labor, the marginal product of capital will eventually decrease, which would reduce the average standard of living.

In Neoclassical Growth Theory,increasing the Amount of Capital Employed in Production