Moving along the production function shows the relationship between , holding all else constant.

Question

Quizplus · Accepted Answer

The production function shows the relationship between labor input and real GDP, holding all else constant. This means that if we increase the amount of labor input, we will see an increase in real GDP, assuming that capital input and technology remain constant. Other factors, such as natural resources or government policies, can also affect real GDP, but the production function only considers the inputs of labor, capital, and technology.

Moving Along the Production Function Shows the Relationship Between