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    changes in the capital stock

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    What two kinds of changes in the capital stock can improve labor productivity? What determines the slope of the per-worker production function?

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    In order to increase productivity, each worker must be able to produce more output. This is referred to as labor productivity growth. The only way for this to occur is through an in increase in the capital utilized in the production process. This increase can be in the form of either human capital or physical capital. Since we have to mention what happens to the capital stock we have to stick to ...

    Solution Summary

    Changes in the capital stock are overviewed.