Scenario: Tree Country Has a Population of 18,000 People, of Whom

Multiple Choice

Scenario: Tree Country has a population of 18,000 people, of whom two-thirds are part of the workforce. The country's only asset is wood, where K = 18,000. The country only produces wooden furniture. In the figure below, Y stands for GDP, and H equals efficiency units of labor.

-Refer to the scenario above.If the country's population increases,new technology in the production of furniture will ________.

A) cause the country's GDP to grow at a higher rate
B) decrease GDP
C) cause the country's GDP per capita to grow at a higher rate
D) counteract decreases in GDP per capita