An increase in the capital stock has the same effect on the production function as an increase in
A)labor.
B)output.
C)GDP.
D)technology.

Question

Quizplus · Accepted Answer

An increase in the capital stock increases the productive capacity of an economy, similar to how an improvement in technology enhances the efficiency of production. Both lead to a higher output without necessarily increasing the amount of labor or other inputs.

An Increase in the Capital Stock Has the Same Effect