CFA Level 2
Economics

Impact of Capital Deepening on Economic Growth

Hard Economic Growth And Development Capital Deepening

In the context of economic growth and development, capital deepening refers to the process of increasing the amount of capital per worker. This typically leads to higher productivity and potential output in an economy. Consider the implications of capital deepening in relation to labor productivity, technological advancement, and overall economic output.

Which of the following statements best captures the effect of capital deepening on a country's economy?

Hint

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