The Following Figure Shows Two Aggregate Production Functions

question 97

Multiple Choice

The following figure shows two aggregate production functions.

-Refer to the figure above.As physical capital stock increases from the level that corresponds to point B to the level that corresponds to point A,what can be said about aggregate production function 2 relative to aggregate production function 1?

• A) Output increases relatively faster.
• B) Output increases relatively slower.
• C) Output decreases relatively faster.
• D) Output decreases relatively slower.

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