Question

The aggregate production function is the relationship that tells us​ ______, when all other influences on production remain the same. A. how real GDP changes as the quantity of leisure changes B. how real GDP changes as the quantity of labor changes C. how potential GDP changes as the labor market moves from surplus or shortage to equilibrium D. how the real wage rate changes as the quantity of labor changes

Answer 1

B. how real GDP changes as the quantity of labor changes.

Step-by-step explanation:

• The aggregated production function is defined as how the total real gross domestic product in the economy depends on the inputs like the machinery, capital, facilities that are used in the production and labour i.e the number of hour that is work done in the entire economy. The production function show the values of the outputs given and relations between the factor of production