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Ashurbanipal Ashurbanipal
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A year ago
Country A has a smaller stock of capital than Country B, but the supply of labor in both countries is equal. What does this imply?

▸ The use of an additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor.

▸ The increase in output due to the use of an additional unit of capital will be smaller in Country A than in Country B.

▸ The increase in output due to the use of an additional unit of capital will be larger in Country A than in Country B.

▸ The use of an additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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GremGrem
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A year ago
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A year ago
This helped my grade so much Perfect
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Helped a lot
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