Answer :

Final answer:

Capital deepening increases output per worker by providing workers with more capital, be it physical or human capital, which enhances their productivity.

Explanation:

Capital deepening refers to an increase in the level of capital per person in an economy. When the level of capital deepens, it leads to an increase in output per worker. This is because having more capital, whether in the form of physical capital (such as machinery) or human capital (such as education and skills), allows workers to be more productive.

For example, imagine a factory that invests in new machinery, increasing the amount of physical capital available to each worker. With the new machinery, workers can produce more goods or perform tasks more efficiently, resulting in an increase in output per worker.

Similarly, if a worker invests in their own education and gains additional knowledge and skills, they become more productive. This increase in human capital can result in a higher output per worker.

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