What two kinds of changes in the capital stock can improve labor productivity?
There are two main ways in which the capital stock can change and, thereby, improve labor productivity. The capital stock can be increased or it can be improved.
One way to improve labor productivity is to have more capital stock. When there is more capital stock, more workers can use technology to increase their productivity. Let us imagine, for example, a gang of workers who are building the frames for houses. Let us imagine...
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