Final answer:
An aggregate production function relates the factors of production (K, L, M) to the overall output (GDP) in an economy. The equation Y = F(K, L, M) = AK^aL^bM^c represents this relationship, with the parameters A, a, b, and c determining the elasticity of output with respect to each factor. The intensity of labor input is already considered in the aggregate production function, so it doesn't need to be listed separately.
Step-by-step explanation:
An aggregate production function shows what goes into producing the output for an overall economy. In the given equation Y = F(K, L, M) = AK^aL^bM^c, Y represents the GDP in an economy, with K, L, and M being different factors of production. The production function is characterized by the values of the parameters A, a, b, and c. These parameters determine the relationship between the factors of production and the overall output.
For example, the exponent 'a' represents the elasticity of output with respect to capital (K), while 'b' represents the elasticity of output with respect to labor (L), and 'c' represents the elasticity of output with respect to the third factor (M). The parameter 'A' is a scale factor that determines the overall level of output.