Use the figure below to answer the following question.

Figure 22.3.1
-Refer to Figure 22.3.1. The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, the economy will

Question

Use the figure below to answer the following question.
  
Figure 22.3.1
-Refer to Figure 22.3.1. The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, the economy will

Quizplus · Accepted Answer

If the population increases without any change in capital or technology, the labor force will increase, resulting in a decrease in the marginal product of labor and a downward shift of the production function. As a result, the country will move to a less efficient point on the production function, such as point X. Therefore, the answer is C.

Use the Figure Below to Answer the Following Question