The Aggregate Production Function Shows That an Economy Increases Its

question 132

Multiple Choice

The aggregate production function shows that an economy increases its real GDP in the short run by

• A) using more labor.
• B) increasing its physical capital stock.
• C) exploring for new deposits of natural resources.
• D) developing new technologies.

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Definitions:

Industry Analysts

Professionals who evaluate the financial conditions, market trends, and other factors of specific sectors or industries, providing insights and forecasts.

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's individual citizens and businesses.

Incomes

Earnings received by individuals or entities in exchange for labor or investment, including wages, salaries, and profits.

Government Policies

Strategies and actions defined by government bodies designed to influence or guide aspects of the economy or social issues.