According to the Solow model, with constant technology, an increase in capital per worker will lead to a smaller increase in GDP per capita. This is explained by:

Question

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The law of diminishing marginal returns states that as more capital (or any input) is added to a fixed amount of labor, the output per worker will eventually decrease. Therefore, an increase in capital per worker will lead to a smaller increase in GDP per capita.

According to the Solow Model, with Constant Technology, an Increase