The aggregate production function relating real GDP to labor hours

Name: The aggregate production function relating real GDP to labor hours
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The aggregate production function typically exhibits a positive slope because an increase in labor hours leads to an increase in real GDP. However, the slope becomes less steep as employment increases because of the Law of Diminishing Marginal Returns - each additional unit of labor will have a smaller impact on output as employment levels already high.

The Aggregate Production Function Relating Real GDP to Labor Hours