If the Production Function for an Economy Had Constant Returns

question 80

Multiple Choice

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

• A) It would stay the same.
• B) It would increase by 50 percent.
• C) It would increase, but by something less than double.
• D) It would double.

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