Production Function Real GDP = T (L,K),such That Real GDP = T(L

question 14

Multiple Choice

Production Function
Real GDP = T (L,K) ,such that Real GDP = T(L + K)
Assume that the technology coefficient is equal to 0.40.
-Refer to Exhibit 17-1.If this production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,and the technology coefficient rises from 0.40 to 0.50,it would cause a

• A) shift upward in the production function to a higher level of Real GDP.
• B) shift downward in the production function to a lower level of Real GDP.
• C) movement down along the same production function to a lower level of Real GDP.
• D) movement up along the same production function to a higher level of Real GDP.

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Definitions:

Military Expenditures

Funds allocated by a nation for the maintenance and operation of its armed forces, including the development, procurement, and support of military hardware and personnel.

National Income

The total amount of money earned within a country, including wages, profits, rentals, and pension income.

Nominal GDP

The gross domestic product measured in current prices, without adjusting for inflation.

Intermediate Goods

Products used as inputs in the production of other goods or services, such as raw materials or components, which are not finished goods sold to end consumers.