Investment in human capital shifts the aggregate production function:

Question

Quizplus · Accepted Answer

Investment in human capital, such as education and training, increases the level of skills and knowledge of the workforce. This leads to a more efficient use of existing resources, as well as the development of new ideas and technologies. As a result, the aggregate production function shifts upward, meaning that more output can be produced with the same level of inputs. This leads to economic growth and higher levels of productivity.

Investment in Human Capital Shifts the Aggregate Production Function