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? Output per worker will increase by exactly $5,000 Output per worker will increase by more than $5,000 Output per worker will increase by less than $5,000 Output per worker will fall by more than $5,000
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? Output per worker will increase by exactly $5,000 Output per worker will increase by more than $5,000 Output per worker will increase by less than $5,000 Output per worker will fall by more than $5,000
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions
Section: Chapter Questions
Problem 6WNG
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what is the mathematical way to solving this, i used the slope formula but i dont know if that is the way to get answer.
![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 $10,000O to $60,000, but there is no change in technology, by how much
more and in what direction will output per worker change?
Output per worker will increase by exactly $5,000
Output per worker will increase by more than $5,000
O Output per worker will increase by less than $5,000
O Output per worker will fall by more than $5,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d33b794-32a6-4293-be5d-253a14feb31c%2F5eaa1cd0-100d-408f-87b4-192bdd32d973%2Fd62bmpi_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $10,000O to $60,000, but there is no change in technology, by how much
more and in what direction will output per worker change?
Output per worker will increase by exactly $5,000
Output per worker will increase by more than $5,000
O Output per worker will increase by less than $5,000
O Output per worker will fall by more than $5,000
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