Question

What is capital deepening?

Short answer

capital deepening in simple terms is the rise in capital-labor ratio.

Step-by-step solution

Step 1. Introduction

Capital deepening generally enlarges output by the improvement in technology that helps in getting high output per worker.

Step 2. Definition and explanation.

Capital deepening is defined as a rise in the percentage of the capital stock to the number of labor hours worked.

Capital deepening is the expansion in the capital with relation to the number of workers, which lets workers be more productive.