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

question 93

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 labor rises from 6 units to 7 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:

Cerebral Cortex

The cerebral cortex is the outer layer of neural tissue of the cerebrum in the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Nerve Impulses

Electrical signals that travel along neurons, facilitating communication throughout the nervous system.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Variance

A measure of the dispersion representing the average of the squared differences from the mean in a data set.