Two countries-X and Y-have identical production functions.The efficiency units of labor in both countries are also equal.However,Country X has KX units of physical capital stock,while Country Y has KY units of physical capital stock,as shown in the figure below.

How will increases in the physical capital stock affect the output growth in these countries?

Question

Two countries-X and Y-have identical production functions.The efficiency units of labor in both countries are also equal.However,Country X has KX units of physical capital stock,while Country Y has KY units of physical capital stock,as shown in the figure below.
  
How will increases in the physical capital stock affect the output growth in these countries?

Quizplus · Accepted Answer

The Answer of Two countries-X and Y-have identical production functions.The efficiency units of labor in both countries are also equal.However,Country X has KX units of physical capital stock,while Country Y has KY units of physical capital stock,as shown in the figure below.
  
How will increases in the physical capital stock affect the output growth in these countries?

Two Countries-X and Y-Have Identical Production Functions