3. Capital labor ratio is denoted by the equation K/L where K=capital and L=labor. If the total amount of capital remains constant over a certain period of time but the number of workers L grows in the same period, will the value of K/L rise or fall? Justify your answer.

3. Capital labor ratio is denoted by the equation K/L where K=capital and L=labor. If the total amount of capital remains constant over a certain period of time but the number of workers L grows in the same period, will the value of K/L rise or fall? Justify your answer.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter16: Economic Growth

Section: Chapter Questions

Problem 5E

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3. Capital labor ratio is denoted by the equation K/L where K=capital and L=labor.

If the total amount of capital remains constant over a certain period of time but the

number of workers L grows in the same period, will the value of K/L rise or fall?

Justify your answer.

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