Question

    A labor-augmenting technological change has no effect upon the

    A Depreciation investment line Correct Answer Incorrect Answer
    B Saving-curve Correct Answer Incorrect Answer
    C Output curve Correct Answer Incorrect Answer
    D Capital-effective labor ratio Correct Answer Incorrect Answer

    Solution

    A labor-augmenting technological change does not directly affect the depreciation investment line. The depreciation line depends on the rate of capital depreciation and the amount of capital, not on labor productivity.

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