In the Following Production Function,Y = F(K,NA),suppose a Increases by 20%.This

question 69

Multiple Choice

In the following production function,Y = f(K,NA) ,suppose A increases by 20%.This 20% increase in A implies that

• A)the same output can be produced with 20% less labor.
• B)the effective quantity of labor has increased by 20%.
• C)output will increase by less than 20%.
• D)all of the above
• E) both A and C.

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Definitions:

M2

An expansive categorization of money that encompasses cash, checking deposits, and forms of near money that can be easily converted into cash or used for payments.

M1

M1 encompasses the most liquid forms of money supply, including cash and assets that can quickly be converted to cash.

M2

M2 is a broader classification of money supply that accounts for currency in circulation and various other types of accounts that are less liquid than those in M1.

M1

Refers to the physical money supply that includes coins and notes in circulation as well as non-bank public holdings of checkable deposits.