If a country devotes its resources to acquiring more physical capital:

Question

Quizplus · Accepted Answer

Increasing physical capital will lead to an increase in productivity, as it provides more resources for production. However, this will require a decrease in current consumption since resources are being diverted towards investment in physical capital. In the long run, increasing physical capital will result in an increase in output per person since there are more resources available for production.

If a Country Devotes Its Resources to Acquiring More Physical