Production Function Real GDP = T (L,K),such That Real GDP = T(L

question 77

Multiple Choice

Production Function
Real GDP = T (L,K) ,such that Real GDP = T(L + K)
Assume that the technology coefficient is equal to 0.40.
-Refer to Exhibit 17-1.If this production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,and capital rises from 4 units to 6 units it would cause a

• A) shift upward in the production function to a higher level of Real GDP.
• B) shift downward in the production function to a lower level of Real GDP.
• C) movement down along the same production function to a lower level of Real GDP.
• D) movement up along the same production function to a higher level of Real GDP.

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Definitions:

Revocation

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A person who voluntarily undertakes to perform a service for another without receiving any compensation.

Undisputed Compensation

Payment or remuneration that is acknowledged and accepted by all parties involved as fair and just, without any objections.