International Economics - Dominick Salvatore| Labour growth and Capital Accumulation over time|

[@farahnaz7147]

Goood

[@Ajk801]

thank you🥰😚

[@Ajk801]

25:10 If both labor (the number of workers) and capital (things like machinery, buildings, etc.) are increasing at the same rate, then productivity (how much each worker can produce) and income per person stay the same. This is because the ratio of capital to labor remains constant. If labor is growing faster than capital, then there are more workers but not enough capital for each worker. This means each worker has less capital to work with, so productivity and income per person decrease. If capital is growing faster than labor, then there is more capital for each worker. This means each worker has more resources to work with, so productivity and income per person increase. SIMPLE EXPLANATION OF THAT PARA

[@BMBS07]

That's correct..👍