The aggregate production function of an economy shifts upward when ________ produce a higher output.
A) the same amount of capital and a higher amount of labor
B) a higher amount of capital and labor
C) the same amount of labor and a higher amount of capital
D) the same amount of capital and labor

Question

Quizplus · Accepted Answer

An upward shift in the aggregate production function indicates that the economy can produce more output with the same amount of capital and labor, typically due to technological advancements or improvements in efficiency.

The Aggregate Production Function of an Economy Shifts Upward When