When technological advances are of the capital-using kind, it is possible for an economy to increase
its productivity without any net investment in capital goods.

Question

Quizplus · Accepted Answer

Technological advances of the capital-using kind typically require additional investment in capital goods to implement and utilize the new technology effectively, thus increasing productivity. Without this investment, the full potential of the technological advances cannot be realized.

When Technological Advances Are of the Capital-Using Kind, It Is