If the quantity of capital per worker in the economy increases,

Question

Quizplus · Accepted Answer

When the quantity of capital per worker in the economy increases, labor productivity increases. This is because workers have access to more or better tools, technology, and equipment, which can help them produce more output with the same amount of labor input. It does not necessarily lead to an increase in the amount of money held by workers or the stock of financial assets held by the public, nor does it necessarily increase the stock of human capital.

If the Quantity of Capital Per Worker in the Economy