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Suppose we measure labor productivity by the amount of output (horizontal axis) per unit of physical capital per worker (vertical axis) when everything else is

Suppose we measure labor productivity by the amount of output (horizontal axis) per unit of physical capital per worker (vertical axis) when everything else is constant. If there is an improvement in technology, what change can we expect on the labor productivity plot?

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a

an upward movement along the labor productivity curve

b

a downward movement along the labor productivity curve

c

an upward shift of the labor productivity curve

d

a downward shift of the labor productivity curve

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