When a Production Function Is Graphed with Real GDP on the Vertical

question 53

Multiple Choice

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor ________________________which shifts the LRAS curve ____________ resulting in ______________________.

• A) shifts the production function up; rightward; economic growth
• B) shifts the production function down; leftward; a shrinking economy
• C) moves us up along a given production function; rightward; economic growth
• D) moves us down along a given production function; leftward; a shrinking economy

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Definitions:

ATMs

Automated Teller Machines, electronic banking outlets that allow customers to complete transactions without the need for a human clerk or bank teller.

Banking Industry

The sector of the economy made up of banks and financial institutions that provide services like accepting deposits, lending money, and other financial activities.

Substitutes

Goods or services that can be used in place of each other, having the ability to satisfy similar consumer needs or desires.

Complements

Goods or services that are used together, where an increase in demand for one leads to an increase in demand for the other.