If the per-worker production function shifts down,
A)it now takes more capital per hour worked to get the same amount of real GDP per hour worked.
B)an economy can increase its real GDP per hour worked without changing the level of capital per hour worked.
C)the per-worker production function becomes steeper.
D)positive technological change has occurred in the economy.
E)workers have acquired more human capital.

Question

Quizplus · Accepted Answer

If the per-worker production function shifts down, it means that the same amount of capital now produces less output. Therefore, it now takes more capital per hour worked to get the same amount of real GDP per hour worked.

If the Per-Worker Production Function Shifts Down