Multiple Choice
Consider a country that suffered through five years of civil war but now has a stable government that has the support of the majority of the people.In this country,we are likely to observe
A) an increase in physical capital and an upward shift of the production function.
B) an increase in physical capital but no change in the production function.
C) an upward shift of the production function but no change in physical capital.
D) no change in physical capital or the production function.
E) an increase in physical capital and a downward shift of the production function.
Correct Answer:

Verified
Correct Answer:
Verified
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