In the Aggregate Production Function Y = a K0

question 16

Multiple Choice

In the aggregate production function Y = A K0.3L0.7, real business cycle theory treats ________ as the key independent variable.

• A) potential output
• B) productivity
• C) the capital stock
• D) the labor input

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Definitions:

Population

The total number of people inhabiting a particular country, area, or place.

Asian Countries

Asian countries include the nations located on the continent of Asia, which is the world’s largest and most populous continent, featuring a diverse range of cultures, languages, and economies.

Prohibited

Forbidden by law, regulation, or other forms of official authority.

Immigrants

Individuals who move from one country to another with the intention of settling in the new country permanently.