Technological progress directly raises output, but also slows capital deepening.

Name: Technological progress directly raises output, but also slows capital deepening.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Technological progress can increase output by improving efficiency or introducing new products, but it can also make existing capital equipment obsolete or less valuable, reducing the incentives for businesses to invest in new capital deepening. Therefore, technological progress may slow down capital deepening.

Technological Progress Directly Raises Output, but Also Slows Capital Deepening