In the aggregate production function, Y represents real GDP, K represents the capital stock, L represents the quantity of labor, and A represents an index of efficiency. Which of the following equations represents the aggregate production function?
A) Y = (K × L) / A
B) Y × A = (K × L)
C) Y = AF(K, L)
D) Y = (K × L) = A /FY
C
Economics
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The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its economic profit
A) is more than $300. B) is $300. C) is less than $300. D) The premise of the question is wrong because the firm is incurring an economic loss.
Economics
During the "computer revolution" of the 1980s and 1990s, many firms replaced old technology with new technology. What might explain why firms don't change technology as quickly today?
What will be an ideal response?
Economics