The Table Below Shows Various Values of Labour (L),capital (K),and

question 57

Multiple Choice

The table below shows various values of labour (L) ,capital (K) ,and technology (T) for Economies A,B,and C.In each case,the aggregate production function takes the following form: Y = T × TABLE 25-4 Refer to Table 25-4.Consider the changes shown for L,K,and T for Economy B,where output (Y) is the economy's real GDP.As total labour and capital inputs rise,this economy will show

• A)rising GDP but falling per capita GDP.
• B)rising GDP and rising per capita GDP.
• C)rising GDP but constant GDP per capita.
• D)GDP rising faster than capital.
• E)GDP rising more slowly than capital.

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