The aggregate production function shows that an economy increases its real GDP in the short run by

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The aggregate production function states that the economy's real GDP is a function of labor, physical capital, and technology. Therefore, using more labor in the short run will increase the economy's real GDP. Increasing physical capital stock or developing new technologies will also contribute to increasing real GDP, but these are long-run factors. Exploring for new deposits of natural resources may have a positive impact on the economy's real GDP, but it is not directly related to the aggregate production function.

The Aggregate Production Function Shows That an Economy Increases Its