The table below shows various values of labour (L),capital (K),and technology (T)for Economies A,B,and C.In each case,the aggregate production function takes the following form: Y = T × TABLE 25-4 Refer to Table 25-4.Consider the changes shown for L,K,and T for Economy C,where output (Y)is the economy's real GDP.As total labour and capital inputs rise,this economy will show

Question

The table below shows various values of labour (L),capital (K),and technology (T)for Economies A,B,and C.In each case,the aggregate production function takes the following form: Y = T ×   TABLE 25-4 Refer to Table 25-4.Consider the changes shown for L,K,and T for Economy C,where output (Y)is the economy's real GDP.As total labour and capital inputs rise,this economy will show

Quizplus · Accepted Answer

As both labor and capital inputs are increasing, the aggregate production function is likely to increase, leading to a rise in GDP. As the population is not explicitly mentioned in the question, we cannot determine whether per capita GDP will rise or fall. However, as total inputs are increasing, it is reasonable to assume that per capita GDP may also increase. Therefore, option B is the best choice.

The Table Below Shows Various Values of Labour (L),capital (K),and