Question: Consider the basic Model of Production, wherein the parameter (i.e. alpha) is set to 1/3. An increase in the parameter leads to: Question 6 Answer

Consider the basic Model of Production, wherein the parameter (i.e. alpha) is set to 1/3. An increase in the parameter leads to: Question 6 Answer a. None of the other answers is correct b. A decrease in the equilibrium quantity of capital only c. An increase in the equilibrium quantity of capital only d. A decrease in the quantity of capital and an increase in the quantity of labour in equilibrium e. An increase in the quantity of capital and a decrease in the quantity of labour in equilibrium

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