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Perylia produced 10 million tons of wheat in a certain year, using a given stock of capital, K, and ...

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Perylia produced 10 million tons of wheat in a certain year, using a given stock of capital, K, and ...

Perylia produced 10 million tons of wheat in a certain year, using a given stock of capital, K, and efficiency units of labor, L. It was able to increase production to 15 million tons within 2 years without any increase in its physical capital stock or the efficiency units of labor. Suppose wheat is the only good produced in Perylia. What is a likely reason for the increase in production? Explain with a suitable diagram.

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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