Principles of Macroeconomics / Unit 4 MAC 0312 short lesson, about 20 seconds
Capital Deepening
Captions available
The idea
Capital deepening is more capital per worker, physical or human. It moves the economy along its production function toward higher output per worker.
In practice
More machines per worker, and more schooling per worker, both count.
Where people slip
Because of diminishing returns, deepening alone cannot raise growth forever; technology has to shift the function.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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