A decrease 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 decrease in the capital stock would lead to a decrease in the amount of productive resources available to produce goods and services. As a result, there would likely be a decrease in the level of output, leading to a decrease in real GDP per capita.

A Decrease in the Capital Stock Would Be Expected to