The aggregate production function shows a(n)________ relationship between ________ and output.
A) decreasing; physical capital stock
B) increasing; physical capital stock
C) constant; labor
D) decreasing; labor

Question

Quizplus · Accepted Answer

The aggregate production function shows an increasing relationship between physical capital stock and output. As the level of physical capital stock increases, it leads to higher productivity and output. This is a key insight into why investment in physical capital is important for long-term economic growth.

The Aggregate Production Function Shows A(n)________ Relationship Between ________ and Output

The Aggregate Production Function Shows A(n) Relationship Between and Output