Given below are two statements :
Statement I : Capital deepening is the process by which capital grows at a faster rate than labour and the capital labour ratio rises.
Statement II : The growth of output per worker is result of technological change which decreases output per worker for a given capital/labour ratio.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both Statement I and Statement II are correct
2
Both Statement I and Statement II are incorrect
3
Statement I is correct but Statement II is incorrect
4
Statement I is incorrect but Statement II is correct