Other things held constant, investment in physical capital will increase: labor productivity. national income. wages. all...

Question

Question

Other things held constant, investment in physical capital will increase: labor productivity. national income. wages. all of the above

Answer 1

Answer #1

Physical capital refers to input used in production process or factor of production like machinery, tools, bulidings etc.

Investment in physical capital will increase the labor productivity, which further leads to rise in national income and wages.

Answer: option (d) i.e., all of the above.

Answer 2

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