Answer: increase.

## Explanation When total factor productivity (TFP) increases, the capital-to-labor ratio will **most likely increase**. **Reasoning:** - Total factor productivity represents technological progress and efficiency improvements that make both capital and labor more productive - Higher TFP increases the marginal product of capital, making capital investment more attractive - Firms respond to increased productivity by investing more in capital to take advantage of the higher returns - This leads to capital accumulation and an increase in the capital-to-labor ratio In economic growth models, technological progress (TFP growth) is a key driver of capital deepening, as it creates incentives for firms to invest in more capital equipment per worker.

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