An increase in population growth will lead to a ________ in the steady-state capital-labor ratio and a ________ in output per worker.
A)fall; fall
B)fall; rise
C)rise; rise
D)rise; fall

Question

Quizplus · Accepted Answer

An increase in population growth leads to a fall in the steady-state capital-labor ratio because more workers are available relative to capital. This dilution of capital among more workers typically results in a fall in output per worker, as there is less capital for each worker to use, reducing productivity.

An Increase in Population Growth Will Lead to a ________