Question: Show what would happen to the production function if the capital stock decreased. Suppose, too, that the decrease in the capital stock because t made

Show what would happen to the production function if the capital stock decreased. Suppose, too, that the decrease in the capital stock because t made workers less productive to firms—shifted the labor demand curve leftward. Graphically illustrate the full impact of a decrease in the nation’s capital stock under this assumption. What government policies could cause a decrease in the capital stock?

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