What kinds of changes in capital stock improve productivity
What two kinds of changes in the capital stock can improve labor productivity? How can each type be illustrated with a per-worker production function? What determines the slope of the per-worker production function?
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What two kinds of changes in the capital stock can improve labor productivity? How can each type be illustrated with a per-worker production function?
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Explain what factors determine how much investment is required to maintain a given level of capital per effective worker.
1. On consolidated net income. 2. On the distribution of income to the controlling and noncontrolling interests.
Explain what factors determine the slope of the required investment line. Assume the economy has achieved the balanced growth steady state.
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