One effect of the Gulf War was the destruction of a good portion of Kuwait's capital stock.How would you expect this to affect Kuwait's capital-labour ratio in the long run? There would be
A) a rightward movement along the saving-per-worker curve and an increase in the capital-labour ratio.
B) no change in the long-run capital-labour ratio.
C) a downward shift in the saving-per-worker curve and a decrease in the capital-labour ratio.
D) a leftward movement along the saving-per-worker curve and a decrease in the capital-labour ratio.
Correct Answer:
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