Demonstrate Graphically and Explain Verbally What Would Happen to Output

question 11

Essay

Demonstrate graphically and explain verbally what would happen to output (according to the Classical growth model)if suddenly people need more food to subsist than was previously thought.

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Definitions:

Output

The total quantity of goods or services produced by a firm, industry, or economy in a specific period.

Variable Inputs

Inputs or resources whose usage changes according to the level of production.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).