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Answer to Question #54909 in Macroeconomics for jennifer

Question #54909
Consider the Cobb-Douglas production function. If the stock of labor in the economy increases
while the stock of capital remains unchanged:
a. the equilibrium real rental rate of capital will decrease.
b. the equilibrium real wage will increase.
c. the demand curve for capital will shift up.
d. the demand curve for labor will shift up.
Expert's answer
c. the demand curve for capital will shift up.

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