Which of the following is most likely to have an impact on t
Which of the following is most likely to have an impact on the growth of productivity? a. a decrease in the price level b. a decrease in real money balances c. a decrease in the labor supply d. an increase in the capital stock available to workers
Solution
d. an increase in the capital stock available to workers
Reason
When there is a change in productivity, it means that the total product produced per capita improved. If the capital per worker increases, it is expected that output per capita will increase also as a result.
