Board of Governors of the Federal Reserve System

Figure 1. Production Transition with New Capital Accumulation

Figure 1 "Production Transition with New Capital Accumulation" is a line chart that includes three lines. The lower concave blue line and the upper concave green line shows the production functions before and after technological advancement, respectively. A straight green line connects the two productions functions to illustrate the transition from the low-productivity production function to the high-productivity production function as the economy accumulates capital that embodies the new technology.

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Figure 2. IP and Equipment Investment Share in GDP

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