Suppose labor and capital are gross substitutes.If the capital stock increases,what happens to the marginal product of labor curve and the equilibrium level of employment?
A) The marginal product of labor will shift to the right,and employment will increase.
B) The marginal product of labor will shift to the right,and employment will decrease.
C) The marginal product of labor will shift to the left,and employment will increase.
D) The marginal product of labor will shift to the left,and employment will decrease.
E) The marginal product of labor will shift to the right,and employment will remain the same.
Correct Answer:
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