Which of the following will cause a decrease in output per worker in the long run?
A) An increase in the depreciation rate.
B) A decrease in the stock of human capital.
C) A decrease in the stock of physical capital.
D) A decrease in the saving rate.
E) All of the above.

Question

Quizplus · Accepted Answer

All of the listed factors would cause a decrease in output per worker in the long run. An increase in the depreciation rate would reduce the stock of physical capital, reducing output. A decrease in the stock of human capital would reduce the productivity of workers and lower output. A decrease in the stock of physical capital would directly reduce the amount of capital available for production, reducing output. A decrease in the saving rate would reduce the rate at which capital accumulates, again reducing output per worker.

Which of the Following Will Cause a Decrease in Output