Did increase in capital per labor hour increase the Labor productivity along the productivity curve or did it shift the productivity curve upward??
I guess movement but I’m not sure.
Please give me the answer because in Schwser Test book after chapter questions they saying its movement along the productivity curve but CFA test book page 486 say its should be shift upward in curve. what is right?
Increase in Capital per Hour ----> MOVEMENT Increase in Technology ----> SHIFT What you’re reading in the text refers to a combination of increases in capital and technology.
Can any one tell me theoretically this answer what jdane given please? I mean why Increase in Capital per Hour ----> MOVEMENT and Increase in Technology ----> SHIFT Because from test book page 485 & 486 I thought Capital also cause shift in curve. Some 1 please explain it logically and theoretically.
Capital is only movement. Technology causes a shift. I remember this one.
along the curve only tech change would cause a shift