An increase in the capital stock would be expected to
A)decrease the labor force.
B)increase the level of output.
C)decrease real GDP per capita.
D)increase real GDP per capita.

Question

Quizplus · Accepted Answer

An increase in the capital stock would lead to an increase in productivity, allowing for higher output levels. This increase in output would lead to an increase in real GDP per capita.

An Increase in the Capital Stock Would Be Expected to