Which of the following will cause an increase in output per worker (Y / N)?
A)an increase in the capital stock (K)
B)an increase in the saving rate
C)an increase in K / N
D)all of the above

Question

Quizplus · Accepted Answer

All of the above options will cause an increase in output per worker. Increasing the capital stock (K) will provide workers with more tools and equipment to work with, increasing their productivity. Increasing the saving rate will lead to more investment in the economy, which can lead to increased capital stock and productivity. Finally, increasing K/N (also known as capital intensity) will allow each worker to have more access to capital, leading to increased productivity per worker.

Which of the Following Will Cause an Increase in Output