If the United States is slightly to the left of its steady-state level of capital stock, an increase in capital production is expected to lead to a higher level of real GDP than the increase in the level of real GDP gained from an improvement in technology.

Question

Quizplus · Accepted Answer

An improvement in technology typically leads to a more significant increase in real GDP than an increase in capital production because technology enhances productivity across all levels of capital and labor.

If the United States Is Slightly to the Left of Its