The Following Figure Shows Two Aggregate Production Functions

question 54

Multiple Choice

The following figure shows two aggregate production functions.

-Refer to the figure above.At point B of aggregate production function 2,a one unit increase in the physical capital stock will lead to a ________.

• A) one unit increase in aggregate production
• B) one unit increase in aggregate production if the human capital stock also increases by one unit
• C) less than one unit increase in aggregate production
• D) more than one unit increase in aggregate production

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