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Two countries A and B have the same aggregate production function Y = Asquare root of (KH). In addition, they have the same level of
Two countries A and B have the same aggregate production function Y = Asquare root of (KH). In addition, they have the same level of technology and same level of output. However, if country A adds one more unit of capital, it will have a larger increase in output than if country B were to do the same. What can you infer from this? Country A has a lower level of capital stock K than country B. Country A has a higher level of capital stock K than country B. Country A and country B have the same level of total efficiency units of labor H. Country A and country B have the same level of capital stock K
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