Suppose That the Production Function for an Economy Is Graphed

question 5

Multiple Choice

Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis.When the level of capital in this economy rises,it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________.

• A) a movement down along a given production function; leftward; a shrinking economy
• B) the production function to shift downward; leftward; a shrinking economy
• C) a movement up along a given production function; rightward; economic growth
• D) the production function to shift upward; rightward; economic growth

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Definitions:

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