A production function is
a. a technique for determining the most profitable rate of output.
b. the relationship between a combination of inputs and a quantity of output.
c. an important factor in determining the shape of the long-run supply curve.
d. All of these.
b. the relationship between a combination of inputs and a quantity of output.
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If demand is elastic
A) then it changes very little in response to a price change. B) then it changes significantly in response to a price change. C) then demand is zero. D) then demand is infinite.
There are two basic ways a nation can increase long-run real GDP
a. Create more money and increase government spending. b. Current account surpluses and education. c. Provide more and/or better inputs to the production process and improve the efficiency of the production process. d. Reduce nominal interest rates and increase consumption and investment. e. All of the above.