In a small Asian country, it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $4 million to $6 million
What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $16 million, assuming no technological change and no change in the hours of work?
A) GDP would increase further by exactly $8 million.
B) GDP would increase further by exactly $2 million.
C) GDP would increase further, but by less than $2 million.
D) GDP would increase further by more than $2 million
C
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A firm advertising using an expensive, famous spokesperson is often
A) aimed to raise rivals' costs. B) used to increase the total market demand. C) used to steal customers from rivals. D) used to focus on general problems the product addresses.
Unemployment that is of a short duration to allow time to find a new job is:
a. structural unemployment. b. cyclical unemployment. c. frictional unemployment. d. durational unemployment.