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An Increase in the Level of Total Factor Productivity Will

Question 76

Multiple Choice

An increase in the level of total factor productivity will lead to


A) an increase in the capital-labour ratio and an increase in real GDP per worker.
B) an increase in investment and a decrease in depreciation.
C) an upward shift of the break-even investment line and an increase in the capital-labour ratio.
D) a higher rate of dilution and lower break-even investment.

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