Multiple Choice
A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000.As a result, real GDP per worker (Y/L) grew from $20,000 to $25,000.If the economy increases its capital per hour worked by another $10,000 to $60,000, but there is no change in technology, by how much more and in what direction will output per worker change?
A) Output per worker will increase by exactly $5,000.
B) Output per worker will increase by more than $5,000.
C) Output per worker will increase by less than $5,000.
D) Output per worker will fall by more than $5,000.
E) Output per worker will increase by more than $10,000.
Correct Answer:

Verified
Correct Answer:
Verified
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