The Aggregate Production Function Is Y = 4K⁰

question 136

Multiple Choice

The aggregate production function is Y = 4K^0.5L^0.5. If there are 169 units of capital and 49 units of labor, aggregate output is

• A) 308 units.
• B) 364 units.
• C) 455 units.
• D) 626 units.

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Definitions:

Excess Demand

A situation in which the demand for a product exceeds the supply at a set price, leading to shortages.

Bluetooth Headsets

Wireless headsets that use Bluetooth technology to connect with devices such as smartphones, computers, or other electronic devices for audio transmission.

Quantity Demanded

The amount of a good or service that buyers are willing and able to purchase at a specific price.

Excess Demand

Excess demand occurs when the quantity demanded of a good or service at the current price exceeds the quantity supplied, often leading to upward pressure on prices.