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Assume That the Stock of Capital Increases by 6% and Employment

Question 38

Multiple Choice

Assume that the stock of capital increases by 6% and employment increases by 4%. Given this information, we know that:


A) output per capita will increase by more than 3%.
B) output per capita will increase by less than 2%.
C) output per capita will increase by less than 3% and more than 2%.
D) output per capita will increase by less than 2% and more than 1%.
E) output per capita will increase by 5%.

Correct Answer:

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