Figure 10-5
-In the figure above, suppose that a "neutral" technological improvement occurs. This causes a movement of the steady-state point such as from points

Question

Figure 10-5 
-In the figure above, suppose that a "neutral" technological improvement occurs. This causes a movement of the steady-state point such as from points

Quizplus · Accepted Answer

A neutral technological improvement increases productivity without changing the capital-labor ratio, leading to a higher steady-state level of output per worker, moving the economy from point A to point B.

Figure 10-5 -In the Figure Above, Suppose That a "Neutral" Technological Improvement