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Suppose again that capital' s and labor's shares of income are 0.3 and 0.7, respectively. a. What would be the effect on output of increasing
Suppose again that capital' s and labor's shares of income are 0.3 and 0.7, respectively. a. What would be the effect on output of increasing the capital stock by 10%? b. What would be the effect of increasing the pool of labor by 10%? c. If the increase in labor is due entirely to population growth, will the resulting increase in output have an effect on people's welfare? d. What if the increase in labor is due, instead, to an influx of women into the workplace.
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