Suppose the Aggregate Production Function Is Represented by the Following

question 22

Multiple Choice

Suppose the aggregate production function is represented by the following: Y = AN.Given this information,labor productivity is given by

• A)Y.
• B)N / A.
• C)A / N.
• D)A.
• E) none of the above

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Definitions:

Elastic

A term used to describe the sensitivity of the quantity demanded or supplied of a good or service to a change in its price.

Quantity Demanded

The specific amount of a product that buyers are willing and able to purchase at a given price.

Inelastic

Characterized by a low responsiveness of quantity demanded or supplied when there is a price change, signifying that changes in price have minimal impact on consumers' purchasing behavior.

Price Elastic

Describes a situation where the demand or supply of a good or service is highly sensitive to changes in price.